In another move to encourage adoption of electric vehicles, the Indian government is reportedly planning to introduce tradable auto-emission coupons for automakers.
This move is aimed at encouraging the automakers to make electric vehicles and its infrastructure economically viable right from the beginning.
The proposal was floated by government think tank Niti Aayog and is currently being reviewed by the stakeholder ministries.
According to reports, prices of the coupons, will be market driven. The coupons will be credits based on carbon dioxide emissions per kilometre as well as on a sliding scale for vehicle efficiency.
Under this proposal, automobile manufacturers will be able to redeem these coupons and avail incentives or subsidies.
With this, the government aims to incentivise electric vehicles and low-emission and energy efficient vehicles at the expense of vehicles which have high emissions and lower efficiency.
Earlier in September, Indian Prime Minister Narendra Modi had signaled that his government will soon come out with a fresh policy on electric vehicles and alternative fuels while addressing the global mobility summit MOVE.
In order to encourage people adopt to electrical vehicles, the Indian government launched the FAME scheme in 2015, which expired on March 31, but was later extended by a few months.
At present under the FAME II Scheme, subsidies are available for all categories of electric vehicles — two, three, and four-wheelers — in order to promote green vehicles and check pollution in the country.
The scheme will include an investment of about $783.65 Mn (INR 5,500 Cr) over five years.
As of July 2018, there were about 1.5 Lakh electric vehicles on Indian roads. The segment has been predicted to grow to 5% of all vehicles on the road by 2023, compared to 2017-18 where electric vehicles accounted for less than 1% of all cars sold.
Here’s a quick update of happenings in the electric vehicles segment:
- Transport minister Nitin Gadkari had said that the Indian government is planning to exempt road permits for electric vehicles, and also for vehicles that run on alternative fuels
- Government may soon start operating electric buses in partnership with private players as it looks to improve public transport and reduce pollution
- Maharashtra chief minister Devendra Fadnavis said that his government is planning to invest $3.4 Bn (INR 25K Cr) in the manufacturing of electric vehicles, their components, and charging equipment
With the ongoing push to adopt the electric vehicle technology, the different initiatives by both the state and central government may help accelerate the process of electric vehicle adoption in the country.
[The development was reported by ET]