The IMF has endorsed the government’s policy of Rs 100 billion subsidy for promotion of electric vehicles from 2025–30, sources said.
The new electric vehicle policy for five years, aiming to reduce carbon emissions, cut fuel imports, and promote local manufacturing of electric vehicles (EVs).
To promote EVs’ adoption, the government has allocated Rs nine billion in subsidies for the fiscal year 2025–26.
Under the EV policy Rs 50,000 subsidy will be given to each two-wheeler or three-wheeler, sources at the Ministry of Industries and Production said.
This funding will help deliver over 116,000 electric bikes and more than 3,000 electric rickshaws in two years, sources said. Notably, 25% of the subsidy has been reserved for women to support affordable and eco-friendly mobility options for them.
