Vehicles running on alternative fuel will be exempted from road permit: Gadkari

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To boost the electric vehicles demand in the country, the Ministry of Road Transport has decided to give non-fiscal incentive to them.

The alternative-fuel vehicles will ply on roads without a requirement of road permits.

“The vehicles running on green fuel ethanol, methanol, bio-CNG and electric vehicles (EVs) will be exempted from road permit. The non-fiscal incentives that we will announce will increase sales of electric vehicles to 15% of total sales,” said Nitin Gadkari, Union minister for road transport, highways and shipping.

He emphasised that the green fuel will help India fight pollution menace. “We want to promote usage of substitute fuels and we will have an ethanol industry worth Rs 1 lakh crore within the next five to seven years,” added Gadkari.

He was speaking at the annual convention of Society of Indian Automobile Manufacturers (SIAM). Though, he did not talk about the timeline of implementation.

At present, permits are required by commercial vehicles including contract carriage bus permit, goods carrier permit and cab permit. The move, once implemented, will result in saving time and pollution.

Besides, duties will be exempted from importing EVs to promote local manufacturing. Government is primarily aiming to reduce of imports, increase of exports and reduction of pollution through the move.

Govt will also build compressed natural gas dispensing stations in 300 districts to further push for the manufacture of vehicles running on clean energy.

India will do whatever it takes to usher in electric mobility in a big way as it holds immense promise for economic growth and ease of living, said PM Modi.

All EV makers including Maruti Suzuki and Mahindra will be majorly benefitted from the decision. EV makers had earlier demanded incentive from the govt. EV segment needs more government incentives to make electric vehicles (EVs) affordable as the country moves towards the eco-friendly solution for mobility, said Maruti.

Currently, only 1 per cent of total vehicle sales take place in India.

The government has set eyes on 100 per cent EVs for public mobility and 40 per cent electric for personal mobility by 2030. However, the auto industry body SIAM had proposed 40 per cent of all new vehicles sold in the country to be electric by 2030 and 100 per cent by 2047.

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