New Delhi: India will provide around $ 3.5 billion in incentives to car companies for a period of five years with a revised scheme to improve the manufacturing and export of clean technology vehicles, two sources who are aware of the latest proposals to Reuters.
The government’s original plan is to provide around $ 8 billion to car makers and some producers to promote gasoline technology, with additional benefits for electric vehicles (EV).
This scheme was redrawn to focus on companies that build electric fuel and hydrogen-powered vehicles, Reuters reported on Friday, with a shift like Tesla Inc preparing to enter India.
Not immediately clear why the allocation has been revised, but one source said that because the focus has turned into a clean and advanced technology fewer companies will be eligible for incentives.
India sees clean automatic technology as the center of its strategy to reduce its oil dependence and trim debilitating pollution in its main cities, while also fulfilling emissions commitments under the Paris climate agreement.
Domestic Car Maker Tata Motors is the largest electric car seller in India, with rivals Mahindra & Mahindra and motorcycle motorcycle motorcycle companies and hero Motocorp tightens their EV plans.
The largest car maker in India, Maruti Suzuki, has no short-term plan to launch EV because it does not see the volume or affordability for consumers, said the chairman last month.
A government official with direct knowledge of this issue said the initial allocation for a five-year period had been reduced but up to $ 8 billion could be available if the scheme was successful, the initial fund was fulfilled.
The official did not determine the condition, and the Industrial Ministry and Finance India did not immediately respond to comments that were looking for emails.