Govt Working On New Policy To Promote Electric Vehicles

To promote electric vehicles on a bigger scale, the government is preparing a fresh policy. Initially the policy will be rolled out on a smaller scale to ensure smoother transition and better cooperation from the automobile sector, reported Economic Times, citing source.

The new policy is likely to focus on minimal subsidies and is expected to be announced at a global e-mobility summit to be inaugurated by Prime Minister Narendra Modi on September 7.

The government will first begin creating favourable ecosystems in nine polluted cities with a population of over four million and gradually move to cities with populations of one million-plus, an official said to ET. Also, busy corridors such as Mumbai-Pune and Delhi-Chandigarh are being identified. 

In September 2017, ET reported that a 100 day global challenge could also be thrown open to the automakers by the government for setting up production facilities for EV, batteries and charging stations across the country. But in February 2018, Nitin Gadkari, Union Transport Minister declared that the government has dropped out the plan of drafting a separate policy for e-mobility.

However the official informed ET that work is in progress for creating a favourable ecosystems for transition to electric vehicles. He further said that the government has already begun consultations with industry bodies, including the Confederation of Indian Industries, FICCI and auto makers on five aspects. 

A call will soon be taken on the 8,730-crore second phase of Faster Adoption And Manufacturing of (Hybrid &) Electric Vehicles in India (Fame India) scheme that proposes fiscal and non-fiscal incentives to electric vehicle firms for five years. On the other hand the Power Ministry is also to finalise a policy for EV charging infrastructure which is expected to propose granting subsidies to PSUs for setting up EV charging facilities in metro cities along with national highways.

New Delhi based think-tank Niti Ayog will also be seeking comments from the department of heavy industries, the finance ministry, the department of science and technology, the ministry of road transport and highways and the the ministry of urban development.