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Implementation of the Demonstration Programme on Battery Operated Vehicles during 2005-06

1. Programme Objectives :

The Objectives of the programme are to promote BOVs, which are non-polluting and quite in operation, conserve petroleum products, curb environmental pollution, to get feedback on the performance of BOVs in actual operating for continuous improvement of the BOVs and also for awareness promotion for the eco-friendly vehicles among the people.

2. Types of BOVs covered under this programme

1. New, indigenously manufactured battery-operated buses/mini buses (10 centre and above), with at least 70km. Range in a single charge of batteries and a top speed of 40km/hour. The central subsidy provided by MNRE will be @ 33% of the cost of vehicle, whichever is less. The beneficiary is required to pay the balance cost of BOVs.
2. New, indigenously manufactured battery-operated three wheelers (8 seater and above), having a range of at least 90kms before recharge of traction batteries used, and a top speed of 45km/hour. The Central subsidy of MNRE will be @ 33% of the cost of vehicle (exclusive of excise duty, sales tax, and all other levies), or Rs. 80,000/- per vehicle, whichever is less. The beneficiary is required to pay the balance cost of BOVs.
3. New, indigenously manufactured battery-operated passenger car having a range of at least 90kms before recharge of traction batteries used, and a top speed of 50km/hour. The Central subsidy of MNRE will be @ 33% of the cost of vehicle (exclusive of excise duty, sales tax, and all other levies), or Rs. 75,000/- per vehicle, whichever is less. The beneficiary is required to pay the balance cost of BOVs.

3. Eligible Beneficiaries:

a) For Battery Operated Buses / Mini Buses and Battery Operated passenger Three wheelers (8 seaters and above), the following categories of beneficiaries will be eligible for the provision of subsidy under this programme.

1. Government organization,. Government Undertakings and autonomous institutions:
2. Public / Private limited companies,. Registered voluntary institution under the societies ‘Registration Act, registered professional Associations of repute registered under the Societies Registration Act.

b) For Battery Operated (four seater) passengers Cars, the subsidy will be applicable only for public institutions and not for individuals. Public institutions may include government organizations, public sector organizations, educational institutions, hospital and tourism and archaeological sites among others.

c) For Battery Operated Passenger three wheelers (8 seaters and above), the above scheme shall not be applicable to 3 wheelers manufactured by M/s Scooters India Limited and Mahindra Eco, Mobiled Limited till the time they satisfactory complete the deployment of sanctioned number of three wheelers under the existing demonstration scheme issued by the Ministry will therefore vide order No. 6/4/12/2001 – NT dated 16th and 21st August 2001. The Ministry will therefore notify separately the date of implementation of new scheme in respect of three wheelers produced by M/s Scooters India Ltd. and M/s Mahindra Eco Mobiles Ltd.

(Already issued vide No. 6/4/21/2001- NT dated 24.03.2003, copy enclosed)

4. Methodology of Implementation :

1. This programme would be implemented through the nodal agencies and departments of states and Union territories. The programme implementing Departments and Nodal agencies should certify the cost of BOVs on the basis of quotations or budgetary quotes for specified categories/ types of BOVs for which approval is being sought from MNRE. Proposals should be prepared and submitted to the Ministry of New & Renewable Energy Sources in accordance with the proforma (given in Annexure – I) and terms & conditions laid down by this Ministry for this programme along with an undertaking that the vehicles will be properly operated & maintained and that these vehicles will not be sold or disposed of for a period of at least five years from the date of supply. The respective Departments/nodal Agencies must ensure that adequate infrastructure including battery charging facility exists in order to ensure regular operation of BOVs.
2. Proposal received from programme implementing Departments and agencies will be processed on first-come first-served basis and sanctioned, if found in order, by MNRE.

5. Pattern of Central Subsidy for 2005-2006:

1. Under this programme, the Central subsidy will e applicable only for the purchase of new, indigenously manufactured BOVs as given in paragraphs 2 above and as per the eligibility given in Para 3 above. The beneficiary is required to pay the balance cost of BOVs. The beneficiary shall meet all expenditure on taxes as applicable, spares, accessories, instrumentation (such as speedometer, battery, voltmeter, battery ammeter, etc.), O&M, performance monitoring, staff etc. This Ministry shall not provide financial assistance except for the sanctioned amount of subsidy and PIC (Project Implementation Charges)
2. MNRE will sanction as service charge / PIC of Rs. 1000/- (Rupees one thousand only) per BOV purchased under this programme by the eligible beneficiary to the concerned implementing Modal Agency or Department in the States/Union Territories. The Ministry will not sanction service charge for BOVs purchased by the State Nodal Agency / Department for its own use. PIC would be released to the implementing Department / Agency on the reimbursement basis only after the BOV has been purchased and feedback report on satisfactory performance received in the Ministry.

6. Release of Subsidy :

1. 5 of Central subsidy sanctioned by MNRE will be released to the implementing department / nodal agency on receipt of a copy of acceptance of the purchase order by the manufactures/supplier of BOVs.
2. Subsequent release will be made to the concerned nodal agencies ./ departments only after submission of necessary documents and satisfactory completion of the Terms and Conditions as given in Annexure IV.
3. The beneficiaries may release their contribution for BOVs directly to the manufactures. If BOVs are not purchased within six months from the date of issue of sanction for the release of first installment of subsidy amount by MNRE, the amount of subsidy released will be returned to MNRE with interest (as per Government rules) within one month from the date of cancellation of sanction. MNRE reserves its right to cancel the subsidy without specifying any reasons/ without prior intimation to the concerned agency / department under intimation to the nodal agency / department.
   The implementing departments / agencies should certify the sot of BOV on the basis of Letter of Intent / Purchase order for which subsidy is being requested from this Ministry.