With rising fuel costs and global warming concerns, as many as 9 different electric bike companies have approached the Delhi Government for subsidies.

While the electric car has been considered the chosen mode for the environmentally conscious elite, electric bikes were mostly targeted at B cities as electric bikes run for limited distances after charging.

But with the Delhi Government recently announcing the highest subsidy for electric bikes: 27.5 per cent (15 per cent subsidy and 12.5 per cent VAT refund) the market has just started looking up.

“We are selling a lot in Orissa and Madhya Pradesh. Initially, the B cities were the target group. Now, the market in Delhi is looking very bright after the subsidy announcement. This is the sort of vehicles that children, as well as their parents, can use. Many buyers and dealers have contacted us and we expect a boom in sales around Diwali,” says K V Singh of Ace Motors.

Others have already started selling.

“We have sold over 1,000 vehicles and have bookings for 500 more. With fuel prices rising, electric bikes are a very wanted option,” says Sanjeev Gandhi from Hero Electric, a sister concern of Hero Honda. Plus, people in Delhi are educated and environmentally conscious, he says.

While in other cities this bike would cost around Rs 28,000, in Delhi it’s under Rs 20,000. “Therefore, our customers are from every section, from students to working women to courier boys,” says Gandhi.

The interest might just mean a cleaner city before the Commonwealth Games, say officials.

“Under the Air Ambience Fund, we have enough funds — around Rs 16 crore — for providing subsidy for electric vehicles,” says Environment Secretary J K Dadoo.

The fact that these companies have approached the Government is a great start. “We fully advocate vehicles, which do not consume petrol and diesel. In fact the clutch-less e-bike is a great option for students as they simply need to be plugged in and parents pay the electricity bill,” Dadoo adds.

Nine companies — Hero Electric, Ultra Motors, Ace Motors, Xs Bikes, E-bike India, Avon, Evera Auto, Indus Elec-Trans and Tara (manufactures electric cars and bikes) — have approached the Government for subsidies and information on how to get started.