Union Minister Nitin Gadkari stated that there is no need for subsidy as customers are choosing Electric Vehicle themselves

Union Road Transport Minister Nitin Gadkari has given a big statement on the subsidy given for electric vehicles. What has been said by the Union Minister. We are telling you in this news.

Union Minister for Road Transport and Highways, Nitin Gadkari, said, "A subsidy that was given to electric vehicles is not needed anymore. Since consumers themselves have started opting for EV or CNG vehicles.

Addressing the BNEF summit, Gadkari said though the manufacturing cost of electric vehicles was high in the beginning, with increased demand, the production cost came down thereby making it unnecessary to give any more subsidies on them. "Consumers are now themselves choosing electric and Compressed Natural Gas (CNG) vehicles and I don't think we need to give much subsidy for electric vehicles," the Road Transport and Highways Minister said.

While for internal combustion engine-powered vehicles, including hybrids, 28% GST is payable presently, the electric vehicles attract 5% GST.

Before Nitin Gadkari, Union Heavy Industries Minister HD Kumaraswamy had on Wednesday spoken on subsidies. He had said the government hopes to finalize the third phase of its flagship electric mobility adoption scheme FAME in a month or two.

Union Heavy Industries Minister HD Kumaraswamy had said that an inter-ministerial group is working out the inputs received for the scheme and efforts are on to iron out the issues in the first two phases of the Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicles FAME scheme.

The government is already providing subsidy on electric two-wheelers and three-wheelers under the Electric Mobility Promotion Scheme 2024. Under this, the government is providing a maximum subsidy of Rs 10-11 thousand on electric two-wheelers. At the same time, subsidy up to Rs 50 thousand is being given on three-wheelers. The Indian government started a scheme in the year 2015, which actually marked the beginning of Phase I of the Fame subsidy, with the motive of offering a boost for electric vehicles. This scheme started from April 1, 2015, and was for two years initially; however, it was extended up to 31 March 2019 considering the increasing interest among people. In this phase, the funding provided was almost Rs 529 crore.