Government To Reveal New Electric Vehicle Policy By Year End

Union Minister of Road Transport and Highways, Nitin Gadkari said that the respective ministers had submitted recommendations to the cabinet secretary and they are in the process of drafting the plan.

The new policy is expected to be mainly based on the report presented by policy think-tank NITI Aayog.

The policy committee suggestion includes limiting the sale of petrol and diesel cars, reduction of interest rates on vehicle loans and duties for electric vehicles. They also recommended the batteries for the electric vehicles should be imported in bulk to reduce the overall cost.

The Union Minister also said that few Indian companies had shown interest in investing in electric vehicles and infrastructure related to them.

The new electric vehicle policy will include both light and heavyweight electric vehicles such as cars and buses. A pilot project of running electric public buses and taxis will begin May 26, 2017.

Based on the response, the project will be rolled over in other cities in the country.

India is looking to decrease its dependance on oil imports to half by 2030 along with the reduction in emissions part of its commitment to the Paris climate treaty.

The government has understood that the weak sales of electric vehicles are due to the high cost of batteries and the lack of proper infrastructure for charging. The new policy is expected to reverse that trend in the Indian automobile industry.