The government has decided to end the limit imposed on the permits for electric vehicles and other alternative fuel vehicles. Union Road Transport Minister Nitin Gadkari said the vehicles running with electricity, ethanol, biodiesel, CNG, methanol and biofuel will not need any permit from now onwards.
While addressing SIAM annual convention, Nitin Gadkari said that, “We have decided to exempt EVs and all vehicles including autorickshaws, buses, taxis run on alternative fuel like ethanol, biodiesel, CNG, methanol and biofuel, from permit requirements. We have taken the decision to make these permit-free”.
Nitin Gadkari further stressed that all the states have agreed to their decision in order to think innovatively about the environment. The move will encourage the cab aggregators like Uber and Ola to use increase the use of electric vehicles in their fleet.
The government said that with GST at 12% on electric vehicles, there is no need for the further subsidy to be imposed on EVs and the ministers have already prepared a plan to raise the production of the EVs through non-fiscal initiatives within five years.
In 2005, government launched an environment-friendly initiative to promote the electric vehicles through Faster Adoption and Manufacturing of Electric Vehicles (FAME) India scheme while its second phase FAME II will be launched on 7 September by Prime Minister Narendra Modi with a budget of Rs 5,500 crore.
Gadkari said that the ministry is planning to launch the limited pieces of EVs first and then followed by the customer’s response, they will start the manufacturing of EVs in bulk.
The minister suggested to use the water transport instead and divert from the road transport at the time of Kumbha Mela.
He said, “Why don’t you diversify? From Allahabad to Varanasi, we are maintaining a draft of 1.5 meters. Fifteen crore people will be gathering at Kumbha mela. You come and run 500-600 catamarans. I will give you all permissions in eight years”.