new delhii in a uturn the government has decided to offer a direct subsidy of around rs 14 lakh for each electric car while extending benefits to those purchasing other electric vehicles evs too such as two and threewheelers the subsidy may be as high as rs 4 lakh for highend electric cars some of which are not on indian roads at present sources familiar with the discussions told toi those buying a current electric car model from the tata and mahindra stable can hope to get a subsidy of around rs 14 lakh at the same time the subsidy will be capped at 20 of the cost of the ev advt the decision was taken at a meeting of a highpowered committee headed by expenditure secretary a n jha on thursday as part of the second phase of faster adoption and manufacturing of hybrid and electric vehicles in india fameii with hybrids and trucks to be excluded the panel has recommended an allocation of rs 5500 crore compared to rs 4000 crore earlier for the scheme that will run for five years the final policy will have to be endorsed by the union cabinetthe allocation for famei was rs 700 crore and the near eightfold jump is aimed at weaning consumers away from diesel and petrol vehiclesas first reported by toi on may 14 the original plan was to offer subsidy to evs and also invest in creating a network of charging stations but the government later decided to restrict it only to governmentrun buses and keep private vehicles and cabs out of the policys ambit the rethink was partly driven by intense lobbying by the auto industry which has grown accustomed to concessions such as a lower tax rate on small cars or even mild hybrids niti aayog has pitched for a special focus on 11 large polluted cities including new delhi bengaluru and mumbai sources saidthe subsidy is linked to the size of the battery with each kilowatt hour kwh earning a subsidy of rs 10000 for instance the existing ecars come with batteries with capacity of 14 kwh which will mean that the government will offer a concession of rs 14 lakh similarly twowheelers have batteries with a capacity of 2 kwh while threewheelers come with batteries with 445 kwh advt the government has decided to cap the number of vehicles under the scheme that will earn subsidy to keep a check on spending this number is yet to be finalised by dipak k dash tnn published on aug 25 2018 at 0805 am ist telegram facebook copy link be the first one to comment comment now comments comment now read comment 1 all comments post post find this comment offensive choose your reason below and click on the submit button this will alert our moderators to take actions reasons for reporting foul language defamatory inciting hatred against a certain community out of context spam others report join the community of 2m