Environment
Budget 2019: Subsidy on Electric Vehicle Loan, Reduction in GST to Encourage Faster Adoption of EVs
New Delhi- While the Centre government has decided to make an increase in Special Additional Excise Duty and Road and Infrastructure Cess each by Rs. 1 per litre on petrol and diesel, proposals were given for giving a boost to manufacturing of electric vehicles.
In her maiden budget speech in Parliament today, the Union Minister of Finance and Corporate Affairs, Nirmala Sitharaman said that Under Phase-II of the FAME Scheme, only advanced battery and registered e-vehicles will be incentivized, with greater emphasis on providing affordable and environment-friendly public transportation options for the common man. The main objective of the Scheme is to encourage faster adoption of electric vehicles through upfront incentive on the purchase of such vehicles and by establishing the necessary charging infrastructure for the same.
Phase II of FAME has an outlay of Rs10,000 crore for a period of 3 years and has commenced from 1st April 2019.
We aim to leapfrog and envision India as a global hub of manufacturing of Electric Vehicles. Inclusion of Solar storage batteries and charging infrastructure in the above scheme will boost our efforts,”
she said.
The Finance Minister has further said that the inclusion of solar storage batteries and charging infrastructure in the FAME scheme will give a boost to manufacturing, which is needed for India to leapfrog and become a global hub for manufacturing of these vehicles.
The Finance Minister also said that the Government has already moved GST council to lower the GST rate on electric vehicles from 12% to 5%. Also to make electric vehicles affordable to consumers, the Union Budget says the government will provide additional income tax deduction of Rs 1.5 lakh on the interest paid on loans taken to purchase electric vehicles. This amounts to a benefit of around Rs 2.5 lakh over the loan period to the taxpayers who take loans to purchase an electric vehicle.
To further incentivize e-mobility, customs duty is being exempted on certain parts of electric vehicles.
Read What Got Cheaper, What Got Expensive
1. Road and infrastructure cess has been raised by Re 1 per litre on petrol and diesel
3. Construction materials such as floor covering of plastics, ceramic tiles and metal fittings will have a customs duty of 15% from 10%.
4. For 2019-20, marble slabs will see twice as much customs tariff of 40%.
5. An increased duty of 7.5% will be imposed on stainless steel in ingots or other primary forms as well as its semi-furnished products, from the earlier 5%.
6. Cigarettes containing tobacco will become more expensive.
7. A range of automobile parts will also see an increase in rate of duty. That includes motor vehicle parts, chassis and bodies, including cabs, for certain motor vehicles from 10 to 15%.
8. Duty on electronics and electrical equipment increases for indoor and outdoor split-system air conditioning units, loudspeakers, digital video records, network, video recorders, CCTV cameras and optical fibres, among others.
9. Duty on imported books has been increased by 5%
10. Cashews are going to get more expensive. While the earlier tariff rate was 45%, it has now been increased to 70% under this budget.
What’s Going to Get Cheaper
1. Electric items including cell phone cameras, phone chargers and adapters, set-top boxes, lithium-ion cell, display modules
2. No Duty on electronic parts now manufactured in India
4. No export duty on tanned leather, while duty on hides, skins, leather, tanned and untanned of all sorts has been reduced from 60% to 40%.
6. No duty on raw material, parts or accessories for use manufacture of artificial kidneys, disposable sterilized dialyzer and micro-barrier of artificial kidney
7. The duty on inputs for manufacturing CRGO steel, and amorphous alloy ribbon have been halved to 2.5% and 5% respectively.
8. No custom duties on all forms of Uranium ores and concentrates for the generation of nuclear power as well as all goods for the generation of nuclear power
Photo: Edler von Rabenstein
Read Key Highlights of the Budget 2019 Here
Environment
Shimla: Retaining Wall Collapses During Four-Lane Construction, Residents Flee Homes to Save Lives
SHIMLA | 3 July 2025 –A major mishap occurred in the Lindi Dhar village of Shimla district during the ongoing four-lane highway construction, raising fresh concerns over safety and construction quality. A retaining wall, constructed as part of the project, collapsed once again—posing a serious threat to nearby homes and destroying hundreds of apple trees.
According to local residents, this is not the first time the wall has caved in. Despite previous incidents, authorities failed to take adequate corrective measures. The latest collapse forced several families to abandon their homes for safety, fearing further landslides and structural damage.
Villagers have accused the National Highways Authority of India (NHAI) and its contractors of negligence. They allege that no proper safety precautions were taken in the construction process, even though the area is known to be vulnerable to landslides.
“This wall had collapsed earlier too, but no permanent solution was provided. Now, we are facing the same threat again. Our lives and properties are at constant risk,” said a local resident.
The landslide also damaged a large number of apple orchards—adding to the losses of local farmers who depend on horticulture for their livelihood.
Residents have demanded immediate intervention from the administration and strict action against those responsible for the substandard construction. They have also urged NHAI to put in place robust safety measures to prevent such incidents in the future.
Local officials have visited the site, and further assessment is awaited.
Environment
Police Complaint Alleges Criminal Negligence in Four-Lane Highway Project Between Parwanoo and Solan
Solan | 30 June 2025 – A police complaint has been filed at the Parwanoo Police Station in Solan district, alleging criminal negligence and environmental damage in the construction of the four-lane highway between Parwanoo and Solan. The complaint, submitted by former Deputy Mayor of Shimla Tikender Singh Panwar, accuses the National Highways Authority of India (NHAI) and its executing contractor, G R Infraprojects Limited, of serious lapses that have endangered lives, property, and the natural ecosystem.
According to the complaint, NHAI officials based at the Chakkar office in Shimla, along with planning teams at Rishikesh Sadan, Shanti Kutia, and the executing agency G R Infra, with its corporate office in Sector 18, Gurugram, failed in their duty to ensure minimal damage to the hilly terrain. It is alleged that the project was undertaken without proper consultation with the Geological Department, resulting in a project report that is “completely erroneous.”
Panwar contends that the design and method of slope cutting are fundamentally flawed, driven by ill-conceived ideas and profit motives.
“Instead of cutting the hills at a slope, the excavation has been done vertically,” the complaint states, warning that this approach poses a permanent threat to residents living near the construction site.
The complaint further highlights that since the beginning of the construction, there have been recurring losses of life and property, which the complainant attributes directly to unsafe and irresponsible construction practices.
Significantly, the complaint raises concerns about possible collusion between NHAI and GR Infra, and urges law enforcement to determine whether the negligence was circumstantial or the result of deliberate wrongdoing.
Panwar has demanded that both NHAI and G R Infraprojects Limited be held criminally liable and subjected to legal proceedings under relevant provisions.
As of now, neither NHAI nor G R Infra has issued an official response.
Environment
Himachal Bans Small PET Bottle, Rs 5,000 Fine on Littering of Single-Use Plastics, Compostable Bags
Shimla, May 27, 2025 – Small PET bottles (up to 500 ml) are littering Himachal Pradesh’s hills, forests, and water bodies, threatening its fragile ecosystem.
Ban on Small PET Bottles
Under the HP Non-Biodegradable Garbage (Control) Act, 1995, the state has banned these bottles in all government-organized indoor meetings, conferences, and events, effective June 1, 2025.
Impact on Hotels
The ban extends to HPTDC and private hotels, which must switch to glass bottles or steel water dispensers. A grace period allows clearing existing stocks to avoid financial losses.
Fines for Littering
A Rs 5,000 fine targets littering of single-use plastics, including compostable bags, by individuals, hotels, restaurants, and other institutions.
Mandatory Car Bins
From April 29, 2025, all taxis and public transport vehicles, including HRTC buses, must install ‘car bins’ for waste collection.
Enforcement Measures
Regional Transport Officers and Motor Vehicle Inspectors will verify bins during vehicle registration. Non-compliance incurs a Rs 10,000 fine, with Rs 1,500 for littering biodegradable waste.
Awareness Campaigns
Government bodies will conduct awareness campaigns to discourage small PET bottle use and promote sustainable practices.
Challenges
Himachal’s ban on small PET bottles and vehicle littering targets plastic pollution but faces challenges. Past bans faltered due to weak enforcement, especially in rural and tourist areas.
Small businesses may struggle with costly alternatives like glass or steel containers. Tourists, a major litter source, need better awareness. The car bin mandate requires rigorous monitoring to ensure compliance. Without robust recycling systems and public cooperation, the ban risks limited impact. Subsidizing eco-friendly options and strengthening enforcement are critical to protect Himachal’s ecosystem effectively.
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