New Delhi: The government has extended subsidies on electric two-wheelers till July this year and three-wheelers till March 2028, aiming to boost domestic adoption and manufacturing amid energy supply crisis linked to the West Asia conflict.
As per existing policy, both subsidies ended on 31 March 2026.
“The terminal date for subsidies on electric three-wheelers has now been extended by two years till March 2028, while terminal date for electric two-wheelers has also been extended till July 2026,” Hanif Qureshi, Additional Secretary (Ministry of Heavy Industries), told reporters at an inter-ministerial briefing on the West Asia conflict Monday.
There are sufficient funds to meet the subsidy requirements for both two wheelers and three wheelers, he said.
In view of supply chain disruptions, the government has also relaxed timelines under the Phased Manufacturing Programme (PMP) for trucks and buses by six months. The new deadline is now 1 September 2026.
The phased manufacturing program is used to determine subsidy levels for various categories of electric vehicles. It encourages indigenous production of automobiles. “Considering the supply chain issues due to the West Asia crisis, PMP guidelines for trucks and buses have been relaxed by six months now,” Qureshi said.
On LPG supply to auto component manufacturers, Qureshi said the government is in touch with industry associations and the petroleum ministry.
“No serious shortage of LPG reported among automobile component manufacturers. In fact, vehicle production figures for March indicate a 15-16 percent growth,” Qureshi said.
He added that industries have also been advised to shift to cleaner fuels such as natural gas and electric furnaces.
Addressing the impact of US President Donald Trump’s threat to blockade the Strait of Hormuz, Mukesh Mangal, Additional Secretary, Ministry of Ports, Shipping and Waterways, said, “We, in coordination with the Ministry of External Affairs, are putting our efforts to bring our vessels back. And as soon, it is possible for our vessels to sail from the Strait of Hormuz, it will come back.”
On Saturday, Indian-flagged vessel Jag Vikram, carrying 20,400 metric tonnes of LPG and 24 seafarers, crossed the Strait of Hormuz. It is expected to reach Kandla port in Gujarat on 14 April.
This marks the ninth Indian-flagged vessel to cross the Strait of Hormuz and reach India since the conflict began. Fifteen Indian-flagged vessels remain on the western side of Hormuz, including LNG and LPG carriers, crude oil tankers, and container vessels.
Brent crude prices crossed $100 per barrel on Monday after US-Iran peace talks, facilitated by Pakistan, failed and Trump announced US blockade of the Strait of Hormuz.
However, the US Central Command later said it would “not impede” ships sailing through the Strait of Hormuz to and from non-Iranian ports.
On the energy front, Sujata Sharma, Joint Secretary (Ministry of Petroleum and Natural Gas), said India’s crude sourcing remains diversified.
India now sources crude oil from more than 40 countries, while LNG supplies remain stable. LPG cargoes have been secured in advance, pushing commercial LPG supply to 70 percent, she said.
“But there is a pressure on LPG, hence repeated requests have been made to consumers to shift to other energy sources like PNG and electric cook stoves,” Sharma said.
On the temporary shutdown of Nayara Energy from 9 April for scheduled maintenance, Sharma said domestic LPG production continues to remain steady at around 45,000 metric tonnes per day.
Commercial LPG supply continues at 70 percent of pre-crisis levels, with 1,82,900 tonnes sold since 14 March. Additionally, 21 states are now receiving an extra 10 percent commercial LPG supply which was contingent to promote PNG connectivity.
In a separate move to safeguard domestic fuel availability, the government on Saturday raised export taxes on diesel to Rs 55.5 per litre from Rs 21.5 per litre, and on aviation turbine fuel to Rs 42 per litre from Rs 29.5 per litre.
The move is aimed at curbing exports and redirecting fuel supplies to meet domestic demand.
On diplomatic outreach, Ministry of External Affairs spokesperson Randhir Jaiswal said, “Following the directions of the Prime Minister, we are strengthening our outreach to Gulf countries.”
He added that External Affairs Minister S. Jaishankar visited the UAE on 11–12 April, where he met the country’s leadership, conveyed the prime minister’s greetings, and thanked them for ensuring the welfare of the Indian community.
(Edited by Ajeet Tiwari)
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