CorporateE-bike makers want 30% subsidy, countervailing duty to go
Electronic bike makers want countervailing duty (CVD) on the import of e-bike components to be rolled back and 30 per cent subsidy on e-bikes under New and Renewable Energy Policy in the upcoming Budget in order to provide impetus to the industry.
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"The government should announce (in the forth coming Budget)some policy support for e-bike industry by withdrawing CVD on the import of spare parts of electronic bike that has hindered the growth of the domestic e-bike industry," Hero Electric CEO Surinder Gill said.
The Centre currently charges 8 per cent CVD on the import of e-bike components. For making e-bikes, firms import motor, battery, and other electronic and mechanical parts from China and Taiwan. Over 55 per cent of components are imported.
Also, in order to encourage the use of environment friendly vehicles, the government should provide at least 30 per cent subsidy on the purchase of bike under the New and Renewable energy policy.
"Close to 30 countries are giving such subsidies on e-bikes and Indian government should also seriously think over it," Gill said.
The industry also wants infrastructure support in the form of charging stations for e-bikes and parking provisions in the proposed residential and commercial buildings.
The industry is confident of selling 6-8 lakh e-bikes in next 3-4 years if the Centre accepts their demands against the present expected size of three lakh e-bikes growing at a pace of 10-15 per cent.