A cabinet note is being prepared in this regard and a decision is expected soon, according to a report
In its bid to promote the manufacture and sale of electric vehicles (EVs) in India, the government is reportedly planning to incentivise the purchase of electric vehicles (EVs) with rebates of up to Rs 50,000.
The aim is to bring electric vehicles under the umbrella of priority sector lending and lowering interest rates on loans, a senior government official told ET on condition of anonymity.
The move is part of the government’s efforts to boost sale of electric vehicles in the country so that they eventually comprise 15 per cent of total sales from the current negligible share in the next five years.
A cabinet note is being prepared in this regard and a decision is expected soon, the official informed the daily.
By giving incentives, the government is trying to match the prices of electric vehicles with the current conventional internal combustion engines so that prospective buyers start giving preferences to electric vehicles over conventional vehicles, the person said.
The person also mentioned that the plan could be rolled out in select cities for a fixed tenure in the first phase, and the sops may be linked to battery size and vehicle type.
