Subscribe to enjoy similar stories. New Delhi: The Automotive Research Association of India (ARAI) is likely to spearhead the distribution of ₹780 crore earmarked for upgrading the nation’s automotive testing infrastructure as part of the government’s ₹10,900-crore electric vehicle (EV) subsidy scheme, two persons aware of the matter said.
Being the oldest and largest among these agencies, ARAI will formulate a plan to allocate the fund among the four testing agencies enlisted under the PM E-drive scheme - ARAI itself, International Centre for Automotive Technology (ICAT), Global Automotive Research Centre (GARC), and National Automotive Test Track (NATRAX). "ARAI is likely to make a plan for the division of PM E-drive scheme's allocation, being the oldest and biggest testing agency among those empowered under the scheme," said the first person mentioned above, requesting anonymity.
The plan assumes importance as it would determine the upgradation of all testing agencies, which have the powers to grant authorization to companies to claim subsidies and incentives under various government schemes. The decision to allow ARAI to formulate a plan is currently under discussion, and has not been fully finalized yet, another government official told Mint on the condition of anonymity.
An email query sent to ARAI did not elicit a response. Operated by the ministry of heavy industries, the PM E-drive scheme is the government's flagship scheme for subsidizing electric vehicles.
Under this scheme, consumers can purchase electric two-wheelers, three-wheelers, ambulances, buses, and trucks at a subsidized price, and original equipment manufacturers (OEMs) can claim the subsidized amount from the government. A crucial part of the
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