The federal government has approved the first phase of a Rs100 billion scheme to provide electric rickshaws and bikes to the general public at a subsidised cost. According to reports, the government aims to support the scheme, among other initiatives for electric vehicles, by collecting a staggering Rs122 billion from owners of non-electric cars.

 

The first phase of the two-phase scheme, which aims to facilitate the provision of 3,170 electric rickshaws and 116,000 bikes, was approved by the Economic Coordination Committee (ECC). Reports reveal that eligible individuals will be granted up to Rs200,000 in equity and interest-free loans to acquire the aforementioned electric vehicles.

 

As per reports, the ECC’s meeting was virtually chaired by Finance Minister Muhammad Aurangzeb. A statement from the Ministry of Finance revealed that the ECC had approved the implementation of a subsidy scheme aimed at boosting the adoption rates of electric rickshaws and bikes.

 

The proposal for the subsidy scheme was submitted by the Ministry of Industries and Production. Reports claim that Prime Minister Shehbaz Sharif will launch the first phase of the scheme, under which 1,000 electric rickshaws and 40,000 electric bikes will be available for provision.

 

Data from reports reveals that the federal government has decided to provide Rs50,000 in equity and an interest-free loan of Rs200,000 for electric bikes. The cost of the electric bike will not exceed Rs250,000. For electric rickshaws, the package includes Rs200,000 in equity support along with an interest-free loan of Rs180,000.

 

Equity in this context refers to the amount that the government will cover on behalf of those participating in the scheme. Reports indicate that individuals aged 18 to 65 will be eligible for the scheme. 

 

Moreover, details from reports suggest that a 25 percent quota has been introduced for women to prevent the subsidy scheme from unequally benefiting males at the expense of females. The distribution of these electric vehicles will be carried out in proportion to each province’s population. 

 

However, it merits a mention that Balochistan will receive an additional 10 percent quota, which will be adjusted from the allocations of Punjab and Sindh according to their population shares.

 

Reports have revealed that the federal government is also expected to give 219 electric bikes to two top position holders in federal colleges free of cost.