Government, Tax and Oil… the happy nexus!

You hear a lot of talk about the Government setting up targets for Electric Vehicles and the so called not too famous FAME scheme for faster adoption of Electric vehicles. But you dont see any action on the ground. You dont see any company coming forward to create electric cars, nor do you see the government placing any orders for Electric Bus or Cars. No we are not talking about “Pilot Projects” which are… ploys used to hoodwink the layman and vote bank in a “see I did some good work”.

Did Indian Government buy even 1 Electric Car or Bus… or for that matter even 1 Electric Bike? Who are they FOOLING?

These pilot project would run their 6 month term and will later be scrapped without any information to the public. Pilot Projects with electric vehicles have been done by various State Governments since 2010 and nobody  is informed as to what happened to the public money that was spent on running the Pilot Projects. Some of these buses are purposely run empty on low profit areas to show a loss. How they are able to justify loss for a vehicle that doesn’t require any fuel is beyond imagination. Chinese BYD Buses at Rs 3 crore are expensive but there are cheaper Indian alternatives have they been used? If so what was the outcome? No Government can give you any convincing answer. The last such project was Electric Buses in Banglorewhat is its outcome?  Inspite of people and corporation finding it convenient, comfortable and profitable!…Strange?

If Governments start using electric bus, cars & bikes for not only its staff but also for public  transportation then they would not only save foreign exchange but it will also lead to a MAJOR REDUCED TAX COLLECTION by the Government. Imagine if no car or bike owner had to pay tax for refueling his vehicle! It could bring down inflation by half. No the Govt would rather get their Tax to pay themselves salaries than to introduce electric vehicles.

This is because a Tax (central and excise duties) of Rs 31.20 is added to the Sale Price of 29.50 to give a retail price of Rs 60.70 a litre of petrol in Delhi .

Based on average cost of gasoline and foreign exchange rates during the second half of October, it costs just Rs 24.75 to produce a litre of petrol at refineries, industry officials said.

After adding company margin and other costs, the price charged to a petrol pump dealer is only Rs 27.24 per litre. On this price is added Rs 19.06 of excise duty that the Centre collects and a dealer commission of Rs 2.26 per litre. VAT or sales tax makes up for Rs 12.14 in the price of Rs 60.70 per litre in Delhi.

The government had collected Rs 99,184 crore in excise collections from the petroleum sector in 2014-15. This was Rs 33,042 crore in the first quarter of current fiscal year. Petroleum is the Cash Cow of all petroleum importing nations like India.

So why will the Government want to take away Rs 99,000 Crore from its purse especially when the Petroleum sector will be happy to pay them another 10,000 crore (10% commission) to keep it going?

So those good minded folks looking forward towards the Government to provide “schemes” to make affordable Electric Vehicles could well be wasting their time.

Wishing everyone a very happy Diwali! and hope you are lighting the lamps with pure home made fuel… the desi ghee… epitome and manifestation of energy… and not any other… to bring in brilliance in our minds and lives… and to ward off darkness and evil…. If you get the Lamp wrong in Diwali… you got it all wrong!

For those with weak belief in traditions here is an incident that happened during the Bhopal gas tragedy that killed many people. When the gas leaked, a family who was performing a ritual that involves burning ghee was saved because of the fumes let out by ghee and other things used in the ritual

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