You can now convert your old car into a hybrid
16 Jul 2016
Continuing its efforts to curb vehicular pollution, the union government has now allowed owners to convert their existing vehicles into electric hybrids.
The road transport and highways ministry is aiming to get BS-II and BS-III compliant vehicles converted into electric hybrids. The cost of conversion kits is expected to be just under Rs1 lakh and is expected to decrease when the demand increases.
The notification for this was passed by the road transport and highways ministry on Wednesday. The government will be certifying manufacturers of hybrid electric kits like Bosch and Cummins to develop and provide hybrid kits for vehicles.
The road transport and highway ministry had also planned to ask the ministry of heavy industries & public enterprises to offer incentives to people who get their vehicles converted under the national electric mobility mission plan. The aim of this plan is to achieve national fuel security by promoting hybrid and electric vehicles in the country.
The government's recent initiative to get old vehicles off the road is the Voluntary Vehicle Fleet Modernisation (V-VMP) concept.
Under this proposition, the government plans to offer a discount on excise of up to 50 per cent on a new car to the owners who surrender their cars which have been registered before 31 March 2005. Along with that, the ministry would offer a fair value for scrap and have automobile manufacturers offer discounts to customers buying a new car under this scheme. It is estimated that all this would bring down the cost of a new car by 8-12 per cent.
According to the concept note, which estimated that 28 million vehicles would be off the road, vehicle emissions would be reduced by around 25-30 per cent and oil consumption reduced by close to 3.2 billion litres per year. Just the reduction in oil consumption is estimated to save India around Rs 7,000 crore per year in oil import.
However, this proposition came to a standstill after the revenue department turned down its proposal to offer a discount on excise.
The finance ministry stated that it would benefit the buyers of more expensive vehicles more than those buying the more affordable vehicles. Instead, the ministry proposes a cash incentive to those surrendering their cars, with a fixed upper limit on the amount that can be given for a car.
