Bengaluru: Some states, such as Gujarat, Maharashtra and Delhi, provide great subsidies for consumers to encourage mass adoption of electric vehicles (EV).
But Karnataka’s government policy, released earlier this year, only has a little on this front.
This policy is largely focused on drawing EV and investors to the country.
It offers 15 percent of capital subsidies to investors in this sector at the value of fixed assets for the same five annual payments, with maximum land covered by 50 hectares, and subsidies associated with 1 percent turnover.
The latter will be given to the large EV assembly unit and a five-year manufacturing unit, starting from the first year of commercial operations.
But such incentives have not helped the cause of consumers: the price of EVS has not dropped in the state because they are expected.
Take the example of the electric scooter launched recently.
According to reports, the two variants were priced at Rs 99,999 and Rs 1.2 Lakh in Karnataka.
In Gujarat, they will be available for Rs 80,000 and Rs 1 lakh, and to Rs 85,000 and Rs 1.1 lakh in Delhi.
By not offering subsidies to EV buyers, the Karnataka government seems to keep herself against financial setbacks more pandemic and cutting in the devolution of central funds.
“Our electric vehicle policies are directed to ensure that more producers come to Karnataka rather than encouraging sales.
We hope that the subsidies provided for the government by the government will eventually be forwarded to consumers,” said the Secretary of the Additional Head for the Ramana Reddy Industry Department.
According to a senior official in the Industrial Department, it is ready to enter incentives for buyers in policy, but the Ministry of Finance is not in a position to ratify such steps.
“The Ministry of Finance has quoted the crisis of funds because of a pandemic,” the official added.
Other officials said that the government could consider several steps to increase EV sales.
“Noted the possibility of giving a certain amount of subsidies to consumers in a limited number, say, for 50,000 to 1 lakh two and tricycle in the EV segment,” he said.
Industry Minister Murugesh R Nirani believes that providing direct concessions to consumers may be very difficult due to current financial constraints.
“While Maharashtra and Gujarat may be interested in driving requests, our policy turns towards the increase in supply.
We believe that existing policies and sops given to producers will reduce the basic price of vehicles, and prices will ultimately match the tariffs in other countries, “He said.
He added that the government will study EV prices in other countries to ensure how the best Karnataka can compete.
Karnataka launched the EV policy in 2017, becoming the first country to do it.
Then, it made amendments.