Chandigarh hops on the EV lane with seed money to subsidise buyers
The finance department has created a corpus of ₹5 crore, to be used to fund subsidies for buyers; with this allocation, officials estimate that subsidy can be given to around 500 buyers; there will, however, be a cap on the number of vehicles getting the subsidy. In case of e-cycles, the first 25,000 buyers will be eligible for the subsidy; for e-two-wheelers, the number stands at 10,000; e-cars 2,000; autos 1,000 and e-cars (commercial) first 1,000.
The UT’s electric vehicle (EV) policy is all set to be rolled out by month-end with the finance department creating a corpus of ₹5 crore, to be used to fund subsidies for buyers.
With this allocation, officials estimate that subsidy can be given to around 500 buyers.
“The finance department has allocated a token amount of ₹5 crore in UT budgetary allocation. Though the amount is less than the estimated requirement, it paves way for creation of the EV Fund,” said an UT official.
“Even if there are more than 500 new EV registrations, subsidy will be given though it may be delayed,” the official added.
There will, however, be a cap on the number of vehicles getting the subsidy. In case of e-cycles, the first 25,000 buyers will be eligible for the subsidy; for e-two-wheelers, the number stands at 10,000; e-cars 2,000; autos 1,000 and e-cars (commercial) first 1,000.
Though the draft of EV policy was notified in February this year and it was to be made effective from April 1, the implementation was delayed due to several reasons, including the delay in creation of the fund. There are also other impediments that the UT is yet to address –public charging stations are not fully operational and the online portal for different stakeholders to claim the subsidy amount under the policy is also pending full release.
The UT official said, “The online portal will be a single platform for all stakeholders, including manufacturers and buyers, to get different benefits such as subsidies under the policy. The portal is ready though its security audit is under process.”
The Chandigarh Renewable Energy and Science and Technology Promotion Society (CREST) has so far commissioned 48 public charging stations under FAME-I (slow charging stations) and 22 under FAME-II (fast charging) but none of these are operational as yet. The charging rate is yet to be decided and the process of hiring a management firm is under process. For private charging stations, the administration will provide subsidy.
Subsidies under policy
Apart from exempting them from road tax, the policy incentivises adoption of all types of EVs.
Road tax and registration fees waiver will also be provided as incentive for purchasing EV.
The subsidy on vehicles depends on the category and prices, it ranges from ₹3,000 in case of cycle to ₹2 lakh for a car. (see box)