Delhi govt has offered subsidies worth Rs 100 crore on electric vehicles: Transport Minister

Delhi Transport Minister Kailash Gahlot said it will not be "very healthy" to provide subsidies to buyers of electric vehicles beyond a point.

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Delhi Transport Minister Kailash Gahlot on Monday said it will not be "very healthy" to provide subsidies to buyers of electric vehicles beyond a point. He also said the government has set a target of having one charging point in a radius of three kilometers. "Sufficient subsidies are being given. Subsidies are good to create a demand but electric vehicles have to be within the reach of the common man eventually. That will drive the entire industry in a sustainable way," the minister said during an interaction at the Delhi EV Forum organised here.

"I do not think we need to further increase (it)... We will provide subsidies till the industry matures," he added. The Delhi government has already offered subsidies worth around Rs 100 crore on electric vehicles under its Electric Vehicle Policy launched in 2020, the highest by any state.

Apart from incentives, the government has also waived road tax and registration fees for all EVs. Gahlot also said the Delhi government lost two important years due to the Covid pandemic but it will be able to achieve the target of 25 per cent electric vehicles among total vehicle registrations by 2024.

"The most important target is creating a good network of charging stations. Delhi already has more than 2,000 charging stations. Around 100 charging stations are being created. We have a target of making a charging point available in a radius of three kilometres," the minister said.

Asked what was holding back the sales of electric vehicles despite several awareness campaigns and incentives, Gahlot said a lot of people are not adopting EVs due to the range issue and the unavailability of charging stations along the highways or outside Delhi.

The range of an electric vehicle is the approximate distance it can cover on a single full charge. "The range issue must be addressed by the manufacturers... Comfortable range solutions should be provided," he said.

Gahlot said another reason behind the large number of people not adopting electric vehicles is that their cost is "slightly on the higher side". Asked if fires in electric vehicles have had an impact on the prospective buyers, he said such cases happen whenever a new technology comes in and that things will mature over time.

"I don't think we will be perturbed or shaken by these incidents. Also, as the transport minister, I have directed the department to examine the cause of each such fire," he said.
Gahlot also said governments should not invest in public transport with an intent to make profits.

He said the Delhi Transport Corporation has placed an order to procure 1,500 more electric buses and the delivery will start by the end of this year.