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Electic Vehicles in India get boost through duty cut,however no Support for Public Transport or Oil Bill Reduction

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India’s Transport Policy is an unmitigated disaster with traffic congestion frequently killing people.The lack of roads and traffic planning has made transport in Indian cities a daily monstrous headache for commuters.The use of modern transport which does not cause pollution and reduces congestion is the need of the hour.The government seems to be moving slowly in that direction.While MNRE had announced  a capital subsidy for Green Transport earlier,the Finance Minister cut excise and custom duties on Green Vehicles as well.India’s Union Budget did not have much for the Green Industry except a piffling Rs 200 crore fund for the environment and the cuts of duties for EVs.

What is needed are major structural reforms for changing the whole car dependent transport policy.For a high population density,oil importing poor country like India,private cars don’t make a lot of sense.Public Transport needs massive investments and policy support.However there was nothing of that sort with no increase in duties for cars.India’s government continues to pander to the interest of auto companies while its massive Oil Bill threatens to derail the Indian growth story.

Govt incentivises electric, hybrid vehicles; industry welcomes

The government today proposed to set up a National Mission for Hybrid and Electric Vehicles to encourage manufacturing and selling of alternative fuel-based vehicles.

The Budget for 2011-12 also proposed to cut excise duty on development and manufacturing of hybrid vehicle kits to 5 per cent from the existing 10 per cent, besides fully exempting customs and counter-vailing duty (CVD) on import of special hybrid parts.Currently hybrid vehicles enjoy a concessional excise duty rate of 10 per cent.

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Abhishek Shah

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