E-bikes: Everything you need to know about subsidised scheme

ISLAMABAD: The federal government has devised a scheme to produce 100,000 e-bikes in 18 months to conserve energy as well as help reduce carbon emissions.

According to the documents, the Ministry of Industries and Production has devised the scheme to initially produce at least 100000 e-bikes in 18 months and has proposed a subsidy of Rs 17.5 billion to encourage the purchase of comparatively costlier bikes.

As per the proposed scheme, the government would bear a downpayment of Rs90,000 for an e-bike with an estimated cost of Rs170,000 whereas the buyer will pay Rs10,000 making the total initial payment to Rs100,000. The bank, which will provide a commercial loan of Rs 70000, will charge interest of Kibor+2 or 19 percent which is estimated to be Rs 13300.

Under the proposed scheme, a 24-monthly installment plan has also been given under which the customer will be paying Rs4,310 per month which includes the principal amount of Rs2,917, interest payment of Rs1,109 and insurance payment of Rs284 (2pc).

GOVT TO INTRODUCE E-BIKES TO SAVE ENERGY

The ministry expects the production/sale of 15,000 e-bikes during the ongoing FY2022-23 whereas 60,000 and 100,000 e-bikes are targeted to be produced in 2024-24, 2024-25, respectively, making the total production of 175,000 e-bikes in three years.

The e-bikes would be provided to students with salaried parents, female students/employees (20pc quota), transgender persons (1pc quota), government employees, private sector salaried/self-employed individuals with NTN and bank account, government/armed forces pensioners and Imam Masjid/Hafiz Quran/ Muazzam, duly qualified from an institute recognised by Government of Pakistan (endorsed by Ministry of Religious Affairs).

Under the subsidy leasing model, the Rs100,000 are met on sharing basis by the government and consumer whereas Rs70,000 would be provided by banks as a loan with a 50pc credit guarantee by the government.

The scheme is likely to start in Islamabad, Peshawar, Quetta, Lahore and Karachi in the first phase.

The e-bikes scheme was already presented in the last cabinet meeting and the prime minister has referred it to the Economic Coordination Committee for further deliberation.