The Department of Heavy Industries are seeking Cabinet approval for an investment of Rs. 13,000 Crores to promote Electric and Hybrid vehicles in the country over a period of eight years. The Department of Heavy Industries will also suggest PSU banks to offer loans to customers for purchasing Electric vehicles. Currently, any loan is not available for purchasing electric vehicles.
According to a senior official of Department of Heavy Industries, the government will put around Rs, 13,000 Crores till 2020. This money will incentive the sector which will attract private players. These incentives will help in cutting down the production costs of such vehicles as these are already very expensive compared to the traditional fuel-based vehicles. The money will be spent in setting up R&D Centres and for various promoting activities.
“In next three months, we will send the proposal to the Cabinet for its approval … This investment will help the government to save Rs 27,000 crore on fuel costs”, the official also added.
News Source: Economic Times