New Delhi: The government think tank, Niti Aayog, said the government should provide incentives for the purchase of electric vehicles (EV) in addition to the existing subsidy under the Faster Adoption and Manufacturing of Hybrid and EV (FAME-II) scheme.
The Niti Aayog, in its status quo analysis of electric mobility in India, also said that the government should include EVs and associates in the priority category for loans.
“The government should provide EV purchase subsidy in addition to FAME-II subsidy, along with interest subsidy on the loan amount taken for EV purchases,” Aayog said. It further created non-financial incentives, including priority lanes and exclusive parking for EVs in commercial complexes.
The Aayog also recommended that interest be granted on the loan taken out for EV purchases. It also said that green zones should be demarcated within cities that only allow motor vehicles, and that heavy taxes should be levied on ordinary fuel vehicles.
“Green corridors should be earmarked on which only e-buses are allowed to run,” the Aayog said, adding that a policy should be formulated at the national level to encourage distribution services to invest in the development of charging infrastructure for electricity. It also emphasizes that financial institutions should be encouraged to expand their lending facility to the electric mobility sector.
“Allow the infrastructure levers to use a certain percentage of allotted land to open public facilities, such as cafeterias and food zones, to have an additional revenue stream to ensure the sustainability of business (Madhya Pradesh EV policy made similar provision ), “it said.
The Aayog also proposed that the electricity regulator should give the mandate to provide a mechanism for approving tariff basis of utility investments in building infrastructure for electric charges.
It also offers the opportunity to exchange batteries to participate in the real-time and additional service markets. The government has announced the National Electric Mobility Mission Plan 2020, which seeks to improve national energy security, mitigate adverse environmental impacts of road transport vehicles and increase local manufacturing capacity for EVs.
In addition, the government notified the FAME-II scheme to stimulate the country’s EV market, released the license for the charging infrastructure business and specified guidelines and standards for charging infrastructure for electric vehicles.
Currently, the total share of EVs and low-carbon road transport in total vehicle sales in the country is less than 1 percent. Although, several policies have been taken to increase the acceptance of clean mobility in India. However, the country is still awaiting large-scale adoption of EVs.
Source: Telangana Today