Further consolidating its position on the adoption of electric vehicle (EV adoption), the government today announced a host of incentives for buyers of electric vehicles.
Finance minister Nirmala Sitharaman, in her Budget speech, said that the government envisions India to leapfrog into a global EV manufacturing hub.
The inclusion of solar storage batteries and charging infrastructure will also boost these efforts, she added.
Sitharaman said that the government has already moved the GST council to reduce the GST rate on electric vehicles from 12 percent to 5 percent.
Further, in a big boost for buyers of EVs, Sitharaman announced a major tax incentive in the form of an Income Tax deduction of Rs 1,50,000 on loans taken for the purchase of an electric vehicle.
Furthermore, a special additional excise duty of Re 1/litre on petrol and diesel has also been announced, which might act as a fresh incentive towards the adoption of alternative fuels.
On the FAME II Scheme which commenced from April 1 this year, Sitharaman said, "The FAME II scheme has taken wings. The main objective of the scheme is to provide necessary charging infra and incentivising easy and affordable mode of transportation for the common man."
Sitharaman also outlined the outlay for the second phase of the FAME scheme, which entailed a budget of Rs 10,000 crore for three years commented April 2019.
She said the scheme offers upfront incentives on the purchase of EVs and establishing the necessary infrastructure.
Only advanced batteries and infrastructure will be incentivised, she said.
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