Delhi gives host of incentives for buying electric cars

CAPITAL'S GREEN DRIVE: India's first electric car, Reva, has found favour with the Delhi government.

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New Delhi: India's first electric car, Reva, has found favour with the Delhi government.

In a move to promote green vehicles, the government will give a 15 per cent subsidy on the base price of the vehicle, a 12.5 per cent exemption of VAT and refund of road tax and registration charges, which in the case of the Reva will bring the cost down to Rs 2.9 lakh in the Capital.

These exemptions will be available to all battery run two, three and four wheelers.

“We have imposed cess on diesel and collected quite a lot of money which will be used to give incentives on electric cars like these,” Delhi Chief Minister Sheila Dikshit said.

In the UK, the company has sold almost 1,000 units of Reva, spurred on by the exemption from parking and congestion charges.

Reva has seen a 50 per cent jump in enquiries since oil prices were increased last year. It plans to sell 3,000 units of the car available in three models in 2008 and is even looking at more variants.

“In India we are looking at places where state governments have been more supportive. Probably, the next city will be Chandigarh where the government has announced 15 per cent subsidy for electric cars,” Deputy Chairman and CTO, RECC, Chetan Maini said.

The cost of running an electric car today is 40 per cent less than the conventional petrol car, which costs Rs 4 per kilometer. Also, LPG costs about Rs 2.70 per kilometer, CNG Rs 1.10 per kilometer, and it is 72 paise per kilometer for electric cars.