No permits will be required for electric vehicles and those run on alternative fuels in an effort to increase their number across the country, said Union minister Nitin Gadkari on Thursday. The policy will cover autorickshaws, buses, and taxis that run on alternative fuels such as ethanol, bio-diesel, Compressed Natural Gas, methanol, and biofuel, reported PTI.
“We have taken the decision to make these permit-free,” Transport and Highways Minister Gadkari said during an event in New Delhi. The recommendation was made by a Group of Ministers, headed by Rajasthan Transport Minister Yunus Khan, and all states will abide by it, Gadkari added.
However, there will be no permit exemptions for hybrid vehicles, reported the The Hindu BusinessLine. “There will be 100% exemption for alternate fuel vehicles such as ethanol, methanol, CNG, electric, but not for mild hyrbrids,” said Gadkari.
The minister’s comments come amid his government’s efforts to promote eco-friendly vehicles through the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles India scheme started in 2015. Prime Minister Narendra Modi will launch the scheme’s second phase on Friday.
The government will not provide any financial incentive for automakers turning to electronic vehicles and alternative fuel. “With GST at 12% on EVs, I don’t think there is any further need for subsidy,” said Gadkari. “We need to think innovatively to bring in that environment.”
In the future, cab aggregators such as Ola and Uber could also be directed to induct a certain number of such vehicles in their fleet, said Gadkari.
Companies will not be required to conduct local testing for initially bringing electric vehicles into India for sale. “This will be available for a limited number of pieces in the domestic market and if the customers’ response is positive then these companies can start making the vehicles in India,” said Gadkari.