Electric Vehicle Subsidy To Be Deposited Directly Into Owner's Account

The Delhi government has decided that the electric vehicle subsidy it will offer with the roll-out of its new Electric Vehicle Policy will be deposited directly to the bank account of the vehicle purchaser.

It is speculated that the new EV policy, which the government of the national capital notified last month, will be put into practice from next week.

Under the policy, buyers of electric 2-wheelers, autos, e-rickshaws and freight vehicles will be offered financial incentives of up to Rs. 30,000/-, while the subsidy amount will be up to Rs. 1.5 lakhs for cars.

This amount is in addition to the electric vehicle subsidy offered by the Centre and the policy also proposes a scrapping incentive, waiver of registration fee and road tax, offering low-interest loans for commercial EVs, apart from setting up a separate EV board to manage funds and implement schemes.

So, how will the money be deposited into the accounts of EV buyers? Well, a software has been developed by ICICI bank which will be used for payment of the subsidy.

A demonstration of the same was made by officials of the bank, on 9th September, in a meeting with Delhi Transport Minister Kailash Gahlot. As per the payment mechanism, EV buyers will receive their subsidy amount in just two days.

“Vehicle dealers will access the software and fill the details of the electric vehicle and its buyer at the time of sale. Within 48 hours, subsidy amount will be credited in the bank account of the buyer after verification by motor licensing officers concerned,” a Delhi government officer said.

Vehicle dealers will have to be self-registered with the transport department of Delhi government to be able to process the subsidy at the the time of sale of electric vehicles, he added.