Soon, Electric Vehicle Makers Will Not Need Subsidy, Says Nitin Gadkari – EQ Mag
There will be a huge number of electric vehicle makers in India that the price of lithium ion batteries will come down and the industry will not need any subsidy, said Nitin Gadkari, Minister of Road Transport & Highways in an interview with CNBC-TV18’s Shereen Bhan a day after the Budget 2023 was unveiled.
Gadkari said, “The electric vehicle, we have 400 startups who are making electric scooters now in India and all are now doing good business. Day by day because the number is increasing the cost of lithium-ion batteries is going to reduce. And that is the reason that I feel that the industry doesn’t need subsidy.”
He explained, “As far as the petrol car, the GST is 48 percent and for the electric car it is 5 percent. It is also one type of subsidy, and because of the reduction in the cost, particularly alternative fuel vehicle, now we are going to start flex engine. So I feel that now no more subsidies required for that.”
Gadkari emphasised the importance of sustainable development, saying that the green subject is close to his heart and that green energy will change the scenario in the entire country
He said, “This green subject is very much touching to my heart. From 2004 I am working like emission on alternative fuel, ethanol, methanol, bio-diesel, bio-LNG, bio CNG, electric and hydrogen. I am very much happy about the finance minister speech, about green building, green fuel, green energy and this is really going to change the scenario of the country.”
Gadkari proudly stated that India is the “third largest auto market globally.”
He said, “Automobile industry is giving 4.5 crore jobs and giving maximum revenue as a form of GST to the central and state government. So totally, this government is going to increase our GDP growth, create more employment potential and going to increase our export and reduce our import.”
The Minister spoke about the InvIT model and how it is supposed to be the best, with a return of 8.5 percent. By December, the allocation is supposed to be over, and that the toll income is currently 40,000 crore and is expected to reach 1.40 lakh crore by the end of 2024.
He said, “The InvIT model is supposed to be the best. Now, it is my intention that we want investment not from the big group, not from the foreign investor, but the people like you who are journalists, the salary and people, the pensioners, we are giving them 8.5 percent returns per year and we are going to add their interest every month in their account. For the deposit in the bank, the interest rate is maximum 5.5, we are giving 8.5. And that is the reason that our priority is to take more investment from the small people and make the roads and giving that benefit to the people. That is exactly what to do it.”
Source: PTI
