Reduction of EV incentives, a big blow to the E-mobility adoption, Union govt should retrospect & reverse its decision: Y. Sathish Reddy, Chairman, TSREDC
Hyderabad(May, 23) : Y. Sathish Reddy, Chairman of Telangana State Renewable Energy Development Corporation, has voiced his concerns over the recent decision by the Center in reducing of incentives on electric two-wheeler vehicles, stating that it will hinder the adoption of e-mobility in the country. Previously, there was an incentive of ₹15,000 per kilowatt on each electric two-wheeler, which has now been reduced to ₹10,000 per kilometer. Furthermore, the maximum incentive that could be received on a vehicle has been reduced from 40% to a mere 15%. Y Sathish Reddy asserts that this decision is deeply troubling and goes against the spirit of promoting e-mobility.
This decision will create significant challenges for individuals interested in purchasing electric vehicles. He also emphasises that the Centre introduced FAME-2 (Faster Adoption and Manufacturing of Electric Vehicles) with an aim of promoting electric vehicle usage, and Prime Minister Narendra Modi himself expressed a commitment to achieving full electric vehicle adoption by 2030. Additionally, the central government stated that it would provide subsidies for 1 million electric two-wheelers under FAME-2. However, the Union government has now taken a U-turn by slashing incentives on EV two-wheelers even before reaching its target.
He also points out that public interest in electric vehicles is now gradually increasing, and the reduction in incentives poses a risk of discouraging people from choosing EVs. Moreover, he states that centre for not demonstrating sufficient interest in expanding the infrastructure required for electric vehicles.
Y. Sathish Reddy also highlights the efforts being made by the Telangana government to promote electric vehicle usage in the state. He announces that, following the implementation of the EV policy, 200,000 two-wheelers, 5,000 four-wheelers, 500 buses, and 20,000 autos have been exempted from registration charges and road tax. Responding to the growing demand for EVs, With the support of CM KCR garu & Minister of IT, Industries KTR garu, State govt have announced an additional exemption of registration charges and road tax for 2,000 EV four-wheelers, in addition to the previously announced 5,000 four-wheelers. While the state government is providing incentives on such a large scale, it is ironic that the Union government is reducing subsidies.
Sathish Reddy further states that while countries around the world are promoting electric vehicles through new technologies and policies, the Modi government seems to be undermining the EV sector. He highlights that additional taxes have also been imposed on solar energy, such as the increase in GST on solar equipment from 5 percent to 12 percent. Moreover, a 25 percent customs duty has been imposed on the import of solar PV cells and 40 percent on the import of solar PV modules. Additionally, the subsidy for rooftop solar installations per kilowatt plant has been significantly reduced.
In the global effort to combat climate change, countries have committed to reducing carbon emissions by 45 percent by 2030 and achieving carbon neutrality by 2050. Steps are being taken in the right direction. However, YSR states that the actions of the central government are in direct contradiction to the global goal of reducing global warming. He urges the central government to implement appropriate measures and incentives to promote renewable energy and electric vehicles, keeping in mind the well-being of future generations and the preservation of Mother Nature.
