Electric Car Plan worth Rs 14,000 crores might roll out early

National Electric Mobility Mission Plan 2020 (NEMMP) was unveiled by India’s former Prime Minister, Dr Manmohan Singh in 2009. Under this movement, electric car makers will be entitled for benefits to the tune of Rs 14,000 crores.

Electric Car Plan worth Rs 14,000 crores might roll out earlyIt has now been reported that the plan could be fast forwarded, considering the increasing need for improving our environment. Automakers such as Mahindra Reva, Tata Motors, Maruti Suzuki, Kinetic and Bajaj Auto all said to be working on hybrid models for India, have welcomed this move.

Government of India plans to provide subsidy to the tune of INR 13,600 crores from implementation to 2020, so as to propel and add further impetus to electric and hybrid vehicles in India. The scheme is expected to steer automakers on the road to faster adoption of electric vehicle strategies, this being the technology of the future.

NEMMP 2020 is now in final stages of approvals and expected to be implemented in the next few months, sooner than predicted which has stirred up excitement among automakers in India. The implementation of this plan will not only see a spurt in electric vehicle launches over the next few years but will initiate more automakers in the country to venture into this field.

The delay in implementation of this plan has seen numbers of electric vehicle manufacturers dwindle down from 65 manufacturers a few years ago to just 10 full fledged electric automakers as on date. Any further delay in implementation of this plan will see numbers go down even lower.

Sales of electric vehicles in the country have diminished considerably. In 2011-12 a total of 1 lakh units were sold which went down to 42,000 units in 2012-13 and this dipped further to just 21,000 units in the last financial year. The target set by implementation of NEMMP 2020 plan is to see about 6-7 million electric vehicles on Indian roads by turn of this decade which will in turn help to save upto 2.2 to 2.5 million tones of fuel.

via Economic Times