(LiveMint)
The ministry of road transport and highways has formulated a list of non-fiscal incentives to ensure that electric vehicles (EVs) account for 15% of total vehicle sales in the next five years, Union minister for road transport, highways and shipping, Nitin Gadkari, said at the 58th annual convention of the Society of Indian Automobile Manufacturers (Siam).
This would entail a quantum leap in the sales of electric vehicles, which now forms less than 1% of total vehicle sales in the country. The government also plans to establish compressed natural gas (CNG) dispensing stations in 300 districts to further push for the manufacture of vehicles running on clean energy.
Gadkari also said that electric and CNG-powered vehicles will be exempt from road permits to promote their usage. “Electric vehicles attract 12% GST and no further subsidies are needed and we don’t have any intention of subsidizing personal vehicles. The non-fiscal incentives that we will announce will increase sales of electric vehicles to 15% of total sales. There is no need for automobile companies to ask for incentives any more. They should rather develop a pool of drivers to enhance skill development,” said Gadkari.
