HYDERABAD: The Telangana State Renewable Energy Development Corporation (TSREDCO) has expressed concerns regarding the recent decision by the Union government to reduce incentives on two-wheeler electric vehicles (EVs).
The TSREDCO argues that this move will impede the widespread adoption of e-mobility in the country. Previously, there was an incentive of Rs 15,000 per kilowatt on each electric two-wheeler, but it has now been reduced to Rs 10,000.
Furthermore, the maximum incentive that can be received on a vehicle has been reduced from 40 per cent to a mere 15 per cent. This decision will create significant challenges for individuals interested in purchasing electric vehicles, it said.
TSREDCO chairman Y Sathish Reddy said the Union government had introduced the Faster Adoption and Manufacturing of Electric and Hybrid Vehicles in India (FAME)-2 scheme with the aim of promoting electric vehicle usage. The government had also promised subsidies for 1 million EV two-wheelers under FAME-2, he said, adding that however, the recent reduction in incentives for EV two-wheelers demonstrates a reversal of the government’s stance, even before achieving its target.
He pointed out that there is a growing public interest in EVs, and the reduction in incentives poses a risk of discouraging people from choosing EVs. Moreover, he criticised the Union government for not displaying sufficient interest in expanding the necessary infrastructure to support electric vehicles.