Friday, January 13, 2012
By Shilpa Chopra
Hybrid and electric cars could get a special place in the 2012-13 budget
Is India going the green way? With Mahindra Reva NXR coming in this Diwali, India sure is going to mark a new beginning of green wheels in the country. Besides, it is reportedly known that Indian government could also pump in efforts to help promote green technology in India. As per sources the ministry of heavy industry has sought a provision of Rs 6000 crore package in coming budget 2012.
The package for the auto industry in the upcoming budget 2012-2013 will be aimed at promoting green technology as well as two-wheelers in India, said sources. The funds will be basically used for research and development, infrastructure development besides the import of technology and parts.
See More Auto Expo Images
As per informed sources, the budget provisions for auto industry have been far stretched to Rs 6000 crore following the ever increasing petrol prices so that a viable alternative green technology for mobility can be developed. This will help development of hybrid cars in India and electric vehicles such as Mahindra Reva NXR and others.
See More Auto Expo Pictures
Even at the recently concluded Auto Expo 2012, we have seen cars based on hybrid technology besides electric vehicles. In order to make the electric technology cheaper, the ministry has given a proposal to slash the import duty on Li-ion batteries apart from the reduction of duty on parts used in the production of electric vehicles. If the budgetary provisions get through, car industry experts believe that Mahindra Reva NXR will also see a price reduction and one can expect Reva NXR price to be less than Rs 4 lakh.
In addition to the budget allocation for duty cuts, the government also plans to expand the infrastructure for electric vehicles in the country that include charging stations. This will not only make the electric vehicles such as REVA NXR more attractive to the buyer but will also help reduce dependence on hydrocarbon based fuels such as petrol and diesel. A reduction in pollution will be a plus.