Road Transport and Highways Minister Nitin Gadkari said that no permits would be required for vehicles running on alternative fuel, including CNG, ethanol and EVs, a move that is expected to boost the demand for such vehicles in the country.
“We have decided to exempt electric vehicles as well as vehicles, including auto-rickshaws, buses, taxis, that run on alternative fuel like ethanol, bio-diesel, CNG, methanol and bio-fuel, from permit requirements,” the Minister said at the Society of Indian Automobile Manufacturers’ (SIAM) 58th convention, here on Thursday.
Mr. Gadkari, however, added that this would not extend to mild hybrids or hybrid vehicles.
The Minister added that with the GST on EVs at 12%, there was’nt any further need for subsidy. “In our country, we can’t subsidise individual vehicles. We need to think innovatively to induct environment friendly vehicles. My ministry has prepared a detailed report to promote EVs through non-fiscal initiatives to have at least 15% EVs in the next five years.” He, however, clarified that this was not mandatory.
The government, he said, was also mulling converting two-wheelers into taxis in non-metros, while encouraging the auto industry to use waterways for logistics to trim costs and lower pollution.
Speed governors
Mr. Gadkari also said the government would soon “abolish” the requirement of speed governors.
Meanwhile, in an earlier session, the industry put forth its demand for speedy infrastructure development and better roads, while reiterating the need for a long-term regulatory and policy roadmap for the sector to plan investments better.
SIAM president Abhay Firodia pointed out that policies changed in an ad hoc manner created uncertainty in the industry, and called for a 10-year policy roadmap for the sector.
Pointing out that all decisions were taken in consultation with the industry, Abhay Dhamle, Secretary, Road Transport and Highways Ministry, at a later session, said a joint working group had already been formed to create such a roadmap.
“This week, we will be having the first meeting to discuss the draft of that roadmap.” Minister for Heavy Industries and Enterprises Anant Geete said that the government was with the industry and “will do whatever we can do to help the industry grow.” Assuring that government would address the auto industry’s concerns, he said the industry must adapt to new technologies.
