Telangana Renewable Energy Development Corporation (TS-REDCO) Chairman Y. Satish Reddy has criticised the recent decision by the Central Government to reduce incentives on electric two-wheelers (EVs), calling it detrimental to environmental protection efforts.
Previously, there was a subsidy of Rs 15,000 on each electric two-wheeler, but it has now been reduced to Rs 10,000. The maximum incentive on vehicles was previously up to 40 per cent, but the Central Government has now capped it at Rs 10,000 or 15 per cent of the vehicle price. Chairman Reddy expressed disappointment with this decision, stating that it hampers those who wish to purchase electric vehicles.
He further criticised the Central Government for introducing Faster Adoption and Manufacturing of Electric Vehicles (FAME-2) to promote the use of electric vehicles, while simultaneously reducing incentives. He said that Prime Minister Narendra Modi himself had pledged to achieve a fully electric vehicle nation by 2030. The government had also announced subsidies for 10 lakh electric two-wheelers under FAME-2. However, the reduction in incentives poses a risk of discouraging people from choosing electric vehicles.
Satish Reddy also spoke about the lack of emphasis on infrastructure development for electric vehicles by the Central Government. “The Telangana Government has taken significant measures to encourage electric vehicle adoption. These measures include exempting two lakh two-wheelers, 5,000 four-wheelers, 500 buses and 20,000 autos from registration charges and road tax under the EV policy. Noting the growing interest in electric vehicles, Chief Minister K Chandrasekhar Rao and Minister of IT and Industries KT Rama Rao announced an additional exemption of registration charges and road tax for 2,000 more EV four-wheelers,” he said.
Satish Reddy described it as ironic to reduce subsidies while the world is promoting electric vehicles and solar technology. He also highlighted that the Central Government has imposed higher taxes on solar equipment, including an increase in GST from 5 per cent to 12 per cent and customs duties of 25 per cent on solar PV cells and 40 per cent on solar PV modules.
“In a time when countries worldwide are striving to reduce carbon emissions and achieve carbon neutrality by 2050, the actions of the Central Government are contrary to global efforts to combat climate change,” he added.
