Government to Exempt EVs Using Alternative Fuel from Permit Requirements

Gadkari also said the ministry has done away with the requirement of local testing for initially bringing EVs into India for sale


India is the third largest market for automobiles and the world’s largest market when it comes to two-wheelers. The government is promoting electric vehicles (EVs) to reduce dependence on fossil fuels and protect the environment. To boost the market for EVs and vehicles that run on alternative fuel, the government has decided to do away with permit requirements for the same.

The government has decided to exempt electric vehicles and automobiles run on alternative fuel from permit requirements in a bid to boost such vehicles in the country, stated Union Minister Nitin Gadkari, per Rajya Sabha TV.

According to Rajya Sabha TV, Gadkari also said the ministry has done away with the requirement of local testing for initially bringing EVs into India for sale. “This will be available for limited number of pieces in the domestic market and if the customers’ response is positive then these companies can start making the vehicles in India,” added Gadkari.

About 87 percent people believe reducing air pollution is the biggest motive for them to purchase an electric vehicle and not rising fuel prices, according to a new survey that comes amid an increase in government’s efforts to promote eco-friendly vehicles.

The survey commissioned by Climate Trends and carried out by FourthLion Technologies was conducted online between August 21-24 among 2,178 Indian drivers, vehicle owners and those who plan to purchase, own or drive a vehicle in the next 10 years, the survey said.

“Transportation accounts for about 24 percent of India’s carbon emissions and is a major source of air pollution in several cities across the country. According to a recent WHO report, 14 of the top 20 most polluted cities of the world are in India,” the study noted.

The survey also revealed that most drivers and vehicle owners are personally affected by poor air quality. Nearly 87 percent of the people surveyed said for them, the rising air pollution is the biggest motivation to buy electric vehicles. About 76 percent said they along with their neighbors, friends or family – suffer from poor air quality every day or are starting to show symptoms of being affected by air pollution, it said.

Delhi seemed to be worst affected with 91 percent of its respondents saying they or someone they knew were suffering from poor air quality. Similarly, high percentages were recorded in Hyderabad (78 percent), Chennai (75 percent), Mumbai (74 percent), Bengaluru (71 percent), and Kolkata (70 percent).

Drivers and vehicle owners said they are ‘much more likely’ to consider purchasing an electric vehicle after learning that ‘electric vehicles reduce air pollution through zero on-road emissions’ (72 percent), the survey said.

More than four million internal combustion engine vehicles were sold in India in 2017, and 81 per cent of those sales (20 million units) came from the two-wheeler segment. Mercom previously reported that to speed up India’s EV revolution, the government is planning to subsidize EV charging infrastructure.

In yet another positive news for the sector, Ministry of Power has also issued a clarification stating that no license is required to operate electric vehicle (EV) charging stations in India.

The central government has also approved a subsidy corpus of ₹55 billion (~$0.78 billion) to be disbursed under the second phase of Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicles (FAME) program. The FAME II program will be in force for five years.