Auto industry body SIAM hailed the Delhi state Budget for the fiscal year 2016-17 as a major step in the direction of sustainable mobility of the state.
"The state Budget aims to boost the public transport system which would hopefully translate into lesser use of personal transport for daily commuting leading to less congestion on roads," Society of Indian Automobile Manufacturers (SIAM) said in a statement.
A much much needed impetus to the electric and hybrid vehicles has also been given, which is a welcome support for this fledgling industry to develop, it added.
SIAM also welcomed the move by Delhi Finance Minister Manish Sisodia to exempt road tax on registration of electric vehicles to promote electric and hybrid vehicles.
Delhi finance minister Manish sisodia
It also hailed the move to reduce VAT rate from 12.5 percent to 5 percent on battery operated transport means, including e-rickshaw, battery operated vehicle and hybrid automobile.
"SIAM hope that other state governments would also take note of this initiative and support development of EV/HEV in the country," the industry body added.
Welcoming the state government's plans to acquire new buses, it said: "These steps in totality would lead to a more robust public transport system. SIAM believes that these steps taken towards strengthening the public transport system would go a long way in addressing the issue of traffic on road."