India: Incentivisation of Electric Vehicles

The Government has accelerated its efforts towards encouragement of environmentally conducive options in the country. Aiming to revolutionize the automobile sector by adoption of practices reducing environmental pollution, the Government looks forward to the introduction of policy on electric vehicles and alternative fuel technology to give a thrust to e-mobility in the country.

Efforts so far …

In the spree to endorse the increased usage of electric vehicles, some of the steps taken by the Government are stated below:

• The Faster Adoption and Manufacturing of Hybrid & Electric Vehicles (hereinafter referred to as “FAME”) was launched in 2015 under National Electric Mobility Mission market development and its manufacturing eco-system in the country in respect of environmental-friendly vehicles. [1]
• It plans to provide INR 1,000 crore as subsidy for building a nationwide charging infrastructure for electric vehicles as it seeks to expedite the roll-out of India’s ambitious EV programme.[2]
•  It has exempted the requirement of any permits in order to encourage the use of vehicles which do not pollute the environment.[3]
• It has provided GST at 12 % with respect of electric vehicles.
• It has been promoting investment in the electric vehicles manufacturing sector.[4]

Latest Approach …

While aiming towards the attainment of the objective of inducing more electric vehicles in the transportation system, the Government is working to bring forward schemes and policies to incentivise the local production of lithium-ion batteries. [5]

This will not only lower the cost of production of electric vehicles in India making them affordable by the customers but will also serve as a profitable business opportunity for the entrepreneurs while generating employment and fulfilling the aspect of ‘Make in India’.

The Government takes yet another step towards its progressive vision to make a pollution free nation by taking recourse to resources which do not harm the environment.

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[1]https://www.livemint.com/Industry/h6L29E034RB20kW17GqAXN/Govt-extends-FAME-scheme-by-6-months.html

[2]https://www.livemint.com/Industry/gPQkdVveA5yWzXzit3iQFL/1000-crore-subsidy-likely-for-EV-charging-infrastructure.html

[3]https://economictimes.indiatimes.com/news/economy/policy/end-of-permit-raj-for-electric-alternative-fuel-vehicles/articleshow/65711728.cms

[4]https://auto.economictimes.indiatimes.com/news/industry/govt-to-soon-launch-ev-and-alternate-fuel-policy-pm/65719146

[5]https://www.livemint.com/Industry/JQyksIjj8vPPZsppfzBdfM/PMO-for-incentives-to-lithiumion-batteries-over-electric-ve.html