The Centre’s initiatives to promote electric vehicles (EVs) have been hailed, with stakeholders welcoming a directive to the GST Council to lower the GST rate on such vehicles from 12 to 5%.
Cochin Chamber of Commerce and Industry president V. Venugopal welcomed the upfront incentive to be offered on purchase of EVs, interest subvention for up to ₹2.5 lakh on buying electric vehicles, and the additional income tax deduction of ₹1.5 lakh on interest paid on loans taken to buy these vehicles. “The proposal to lower taxes from 12 to 5% is commendable and will provide an impetus to the sector,” he said. Managing Director of Kerala Automobiles Limited E.R. Shajahan said the sops announced in the Union Budget would result in the price of its e-autos falling by over ₹17,000.
“Our initial plan is to manufacture 7,000 autorickshaws every year. They will make their presence in the market in less than a year, in the same way diesel autos took over from their petrol counterparts.”
“The Centre has earmarked ₹1,000 crore to set up recharging points, while the State too has been contributing its share in this regard. Plans are also afoot to issue fresh city permits only to e-autos in Thiruvananthapuram, Kochi and Kozhikode, to reign in air and noise pollution,” Mr. Shajahan said.
Zero polluting
The proposals to promote e-vehicles will usher in zero-carbon commuting in a decade or so, said Georgekutty Kariyanappally, founder CMD of the Kochi-based Lifeway Solar Devices. The firm was among the first to roll out e-autos in the country. “Autorickshaw owners and drivers are price conscious and hence will opt for e-autos that are set to get cheaper. The hike in price of petrol and diesel will further see people shifting to e-vehicles, which have low operational cost and do not cause pollution.”
The government and the private sector must work in tandem to ensure adequate fast-charging points across Kerala. The State’s plan to usher in 10 lakh EVs, including 3,000 buses, by 2022 is welcome. The lowering of customs duty for EV batteries and components and indigenisation will further boost the sector. The State’s emphasis on generating hydrogen power is timely, Mr Kariyanappally said.
