All said and done, Indians are just not buying electric vehicles. Throwing good money to address the demand-side of the challenge alone is an idea that has clearly failed.
Tabling her maiden budget in Parliament on Friday, Minister for Finance Nirmala Sitharaman gave it another go. She proposed a cut in tax from 12 per cent to 5 per cent and a rebate on tax of up to Rs 1.5 lakh year to be offset against interest paid on money borrowed for buying electric vehicles (EVs).
Broadly, both these measures are fiscal, aimed at creating demand for EVs in the country. The government’s 2nd edition of FAME programme or Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles that is expected to cost Rs 10,000 crore is already in the works.
