Indian Government will spend around Rs 14,000 crore to promote environment-friendly electric and hybrid vehicles, and reduce the country's dependence on fossil fuels.
S. Sundareshan, secretary to department of heavy industries, said the government would spend the money to fund research & development, infrastructure and subsidies.
Speaking on the topic, Sundareshan said, "We will put in some specific schemes with regard to subsidy element, R&D, demand creation and infrastructure."
He added that investment would save as much as Rs 30,000 crore in fuel costs in the next eight years.
India has plans to invest at least Rs 22,500 crore in hybrid cars in the next eight years. While around 14,000 crore will be spent by the government, the balance will be pumped in by private companies.
Electric vehicles are already selling in India. According to lobby group Society of Manufacturers of Electric Vehicles, nearly 130,000 electric vehicles, including YO bykes and Reva cars, were sold in India in 2011-12. Electric scooters are available in the range of Rs 26,000 to Rs 43,000, while Reva cars start at Rs 3.5 lakh.
Auto manufacturers and the government aim to bring six million electric vehicles on road by the year of 2020.