Central Govt To Provide Incentives Worth $3.5 Billion To Automakers For Clean Technology Vehicles

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The central government is set to provide incentives worth $3.5 billion to auto companies over a course of five years to augment manufacturing and export of clean technology vehicles.

The ruling dispensation had earlier planned to give around $8 billion to part manufacturers and automakers to promote gasoline technology and also roll out additional benefits to electric vehicles (EVs).

However, Reuters reports that the strategy was modified to particularly focus on companies that build electric and hydrogen fuel-powered vehicles.

One of the sources quoted in the report mentions that a lesser number of companies would now be eligible to avail the incentives since the focus has been shifted to clean and advanced technology.

A government official told the publication that that up to $8 billion could still be made available provided that the scheme turns out to be successful and a few conditions are fulfilled despite the fact that the initial allocation for the five-year period has been cut down.

Moreover, incentives will also be extended to auto parts makers to manufacture components for clean cars and also to invest in safety-related parts with other advanced technologies such as sensors and radars in connected vehicles.

As per the amended scheme, qualified companies can get cashback payments worth about 10 per cent-20 per cent of their total turnover for hydrogen fuel cell cars and also EVs.

However, carmakers will have to invest at least $272 million over five years to qualify to receive these concerned payments.

Two sources cited in the report revealed that the finer details of the scheme could be disclosed in the coming couple of works itself.

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