Petrol and diesel prices in India are increasing by every passing second. One can say that hybrid cars could be the answer, but Indians are yet to warm up to the idea of buying one mainly because of the limited choices and high prices of these cars in the Indian market. And just when we thought the Indian government was not doing anything to popularize the hybrid concept in India, here comes a shocker.
To protect the environment as well as reduce our dependency on fossil fuel, the government is working on a policy to encourage manufacturing of hybrid cars in India through excise duty concessions. A government official has revealed that the proposal will be piloted by Heavy Industries and Public Enterprises Minister Praful Patel. Along with fiscal sops like differential excise on the cars, this policy would also focus on incentivizing research and development for development of the hybrid vehicle, he said.
“To encourage the production of these cars (hybrids), there is a need to upgrade the laboratory knowledge,” he said.
The Department of Heavy Industry has sought the Cabinet’s approval to form a high-level panel on the issue. And once the panel is approved, it is expected to come out with a clear-cut policy by September.
Hybrid cars run on both the conventional fuel as also electricity charged battery. Currently these vehicles are imported in India, thus incurring heavy taxes. The costs of these cars are almost 25 per cent more than the regular petrol or diesel fuelled vehicles. Toyota’s globally popular hybrid vehicle, Prius, is being imported in India and is priced at over Rs 25 lakh. Almost three years back, Honda had launched it Civic Hybrid Priced at Rs 21.5 lakh, which was slashed to Rs 13.36 lakh but has since stopped selling the car due to cost ineffectiveness.
“We have to see as to how to reduce the price to a reasonable level,” the official said.
Another aspect of the research is a study that will be conducted to assess the infrastructure availability and sops needed for the promotion of these cars in the domestic market. Conventional cars that run on petrol or diesel attract excise duty ranging from 10 per cent (for small vehicles) to 22 per cent for sedans. The hybrid technology is pioneered by Japan, the US and Europe.




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