Electric car | Representative image
manufacturers in India have proposed a short-term policy to the government of putting out 3 million electric vehicles on Indian roads in a bid to accelerate adoption of such vehicles and end uncertainty on schemes and subsidies facing government's electric mobility mission plan.
In a meeting with officials from the ministry of heavy industries and Niti Aayog in New Delhi on Tuesday, representatives from Tata Motors, M&M, Ashok Leyland and Hero MotoCorp pressed for a reduction in goods and services tax (GST) on green vehicles and non- financial incentives to promote electric mobility. The government may go with most of these suggestions and is likely to announce a draft policy on electric mobility by September this year.
"We have suggested a plan that involves having an extreme focus on a certain number of vehicles on the roads. This will automatically take care of requisite eco-system including research and development, charging infrastructure etc, said Sohinder Gill, president, Society of Manufacturers of Electric Vehicles adding that the industry does not want to burden the government exchequer with its demand for a subsidy.
The day-long meeting which was also attended by Abhay Damle, secretary ministry of road transport and highways and Anil Srivastava, adviser infrastructure and connectivity at Niti Aayog deliberated upon the second phase of Fast Adoption and Manufacturing of Electric and (hybrid) vehicles (FAME), a government-backed scheme to incentivise electric vehicles (EVs). The scheme which was to be announced before the end of the financial year 2017-18 has been delayed by six months owing to a lack of consensus among the key stakeholders.
The industry body also suggested non-financial means like taxing polluting diesel vehicles and using the revenue earned from the same to incentivise electric vehicles. It also mooted reducing permit fee on electric buses and three-wheelers and reduction in goods and services tax (GST) on e-vehicles.