Speed up adoption of EVs: Centre to states

The Centre has issued an advisory asking all states and Union territories to create incentives for adoption of electric vehicles (EVs) by allotting land for charging infrastructure and mandating the installation of charging infrastructure in malls, housing societies, office complexes and public parking spaces.

It has also urged transport principal secretaries and transport commissioners of states/Union territories to reduce or waive road tax on EVs and to promote their use as shared mobility vehicles and public transport.

In a letter sent on Wednesday, Abhay Damle, joint secretary, transport, cited the Centre’s initiatives to promote the use of EVs, including mandating green registration plates for zero-emission vehicles and exempting EVs from requiring permits to ply as commercial transport vehicles.

“States are requested to create preferential policies for adoption of EVs through other incentives such as land allotment for charging infrastructure, mandating charging infrastructre in malls, housing societies and office complexes in addition to public parking spaces... as a result of innovations introduced by taxi and auto aggregators, the shared mobility has seen an encouraging growth,” Damle wrote.

“Since the public transport and shared mobility vehicles typically cover higher distances, their conversion into electric would bring considerable impact on harmful emissions in the cities,” he added.

Niti Aayog, the government’s policy think tank, has proposed a complete ban on all internal combustion engine powered two-wheelers and three-wheelers in India, starting 2025.

“Several states have also waived road tax on EVs, thereby reducing the cost of acquisition of these eco-friendly vehicles. To speed the deployment of electric vehicles, it is necessary that adequate lucrative incentives are offered by the governments. States which have not reduced or waived road tax on EVs may please consider waiving road tax to the maximum possible extent on electric vehicles so as to reduce the initial cost of the vehicle for users,” Damle said.

In the Union Budget presented on July 5, the government had announced an income-tax rebate on loans taken to purchase EVs to promote their adoption and to reduce fuel import bills.

The ministry of road transport and highways has given time to states and Union territories time till August 31 this year for feedback on action taken to promote the induction of EVs.