Tax Exemption for R & D in technology for electric and hybrid cars

An item in the times of India says that this subsidy of Rs 14,000 crores will save Rs 60,000 crores in fossil fuel over six years.
http://blogs.timesofindia.indiatimes.com/toi-edit/rs-14000-crore-subsidy-proposed-for-hybrid-electric-cars/

Times of India’s own counter-view is that the subsidy amounting to Rs 1 lakh for a 32 Lakh car would mean nothing to the consumer.

Clearly, the Govt should not subsidize cars selling more than Rs 5 Lakhs. What we ought to do is to offer a tax exemption for electric and hybrid cars costing less than Rs 5 Lakhs. The focus should not be so much on direct savings, but on stimulating Indian automobile industry to do R & D to create new lines of low-cost vehicles that drastically cut into petrol and gas consumption.  The tax exemption should cover a significant portion of the R & D expenditure.

Srinivasan Ramani