Govt To Offer Full Or 50% Concession On Toll Fees For EVs

Govt To Offer Full Or 50% Concession On Toll Fees For EVs

SUMMARY

The road transport and highways ministry is ramping up the work on the new toll policy

NHAI has sent out draft toll policy for review of the ministry

The government aims to achieve 30% e-mobility by 2030

In the run-up to bring 30% electric mobility in the country by 2030, the government is now looking to offer concessions on toll rates for electric vehicles.

An ET report, citing officials aware of the matter, said that the road transport and highways ministry is ramping up the work on the new toll policy. Under this, it may also consider exempting electric vehicles from toll fee or provide up to 50% discount on such tolls for electric vehicles.

Along the same lines, the National Highways Authority of India (NHAI) has sent out the draft toll policy for consultation on road transport and highways which will soon be sent for approval of Union minister of road and transport Nitin Gadkari.

NHAI had hired Boston Consulting Group (BCG) to prepare a draft toll policy with NHAI. NHAI had suggested exemption of EVs from toll payments. However, the concern is that it may take away the revenues of NHAI, and private concessionaires may want to be compensated for this loss from the highways building authority.

Therefore, the group is now exploring the feasibility of providing some sort of concession. The draft toll policy suggests that electric vehicles should be given 50% concession on toll rates, so that the government is able to encourage people to buy EVs.

“The concession will be applicable for the first five years from the date the policy is announced,” the report added. It is being further said that the concession on electric vehicles will be routed through FASTags. It is to be noted that the government has made electronic toll collection through FASTags mandatory from December 1 onwards, as it tries to avoid congestion at toll plazas caused by manual toll collection done by cash.

The policy think tank of the government NITI Aayog had recently proposed that only EVs should be sold in India by 2030. For this, it called for complete electric transition for three-wheelers by 2023 and two-wheelers with an engine capacity less than 150 CC by 2025.

Further, in terms of incentives for EV adoption, in the Union Budget 2019, Finance Minister Nirmala Sitharaman proposed several tax discounts for the sector. She also suggested a new scheme, which will invite global companies through a transparent competitive bidding process to set up “mega manufacturing plants in sunrise” and advanced technology areas including lithium storage batteries, and charging infrastructure.

With major challenges in terms of auto industry slowdown and lack of charging infrastructure for electric mobility, the government continues to work towards ensuring adaptability of EV in the country.

You have reached your limit of free stories
Become An Inc42 Plus Member

Become a Startup Insider in 2024 with Inc42 Plus. Join our exclusive community of 10,000+ founders, investors & operators and stay ahead in India’s startup & business economy.

2 YEAR PLAN
₹19999
₹7999
₹333/Month
Unlock 60% OFF
Cancel Anytime
1 YEAR PLAN
₹9999
₹4999
₹416/Month
Unlock 50% OFF
Cancel Anytime
Already A Member?
Discover Startups & Business Models

Unleash your potential by exploring unlimited articles, trackers, and playbooks. Identify the hottest startup deals, supercharge your innovation projects, and stay updated with expert curation.

Govt To Offer Full Or 50% Concession On Toll Fees For EVs-Inc42 Media
How-To’s on Starting & Scaling Up

Empower yourself with comprehensive playbooks, expert analysis, and invaluable insights. Learn to validate ideas, acquire customers, secure funding, and navigate the journey to startup success.

Govt To Offer Full Or 50% Concession On Toll Fees For EVs-Inc42 Media
Identify Trends & New Markets

Access 75+ in-depth reports on frontier industries. Gain exclusive market intelligence, understand market landscapes, and decode emerging trends to make informed decisions.

Govt To Offer Full Or 50% Concession On Toll Fees For EVs-Inc42 Media
Track & Decode the Investment Landscape

Stay ahead with startup and funding trackers. Analyse investment strategies, profile successful investors, and keep track of upcoming funds, accelerators, and more.

Govt To Offer Full Or 50% Concession On Toll Fees For EVs-Inc42 Media
Govt To Offer Full Or 50% Concession On Toll Fees For EVs-Inc42 Media
You’re in Good company