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Nitin Gadkari on EV subsidy: The automobile sector in India is moving towards clean fuel to curb pollution. The influence of electric vehicles and hybrid vehicles is increasing in the country. To increase the acceptance of electric vehicles, the government is currently giving subsidy on EV vehicles and due to this, the craze of consumers has increased due to these vehicles becoming cheaper, but Nitin Gadkari has given a big shock to those consumers who are thinking of buying a new car.
Hinting at removal of subsidy on electric vehicles, Union Minister Nitin Gadkari on Thursday said there is no need to provide subsidy for electric vehicles (EVs) as consumers are now themselves opting for EV or CNG vehicles.
Addressing the BNEF Summit, Gadkari said initially the cost of production of electric vehicles was high but as the demand increased, the cost of production has come down and hence there is no need for much subsidy.
“Consumers are now themselves opting for electric and compressed natural gas (CNG) vehicles. And I don't think we need to give more subsidy on electric vehicles,” the Road Transport and Highways Minister said in a statement, surprising aspiring consumers and automobile companies.
Gadkari said the GST on electric vehicles is lower than that on petrol and diesel vehicles. “In my opinion the production of electric vehicles no longer requires subsidy by the government. The demand for subsidy no longer seems justified.”
Currently, only 28 per cent GST is levied on vehicles powered by internal combustion engines, including hybrids, and 5 per cent on electric vehicles.
Earlier on Wednesday, Union Heavy Industries Minister HD Kumaraswamy had said that the government will finalise the third phase of its flagship electric mobility adoption scheme FAME in a month or two. A group of ministers is working on the inputs received for the scheme. They are trying to find solutions to hybrid and electric vehicles and the problems in the first two phases of the FAME scheme.