Govt to exempt EVs from permit requirements

In a bid to promote green vehicles, the Centre will exempt electric vehicles (EVs) and automobiles run on alternative fuel from permit requirements, Union Road Transport Minister Nitin Gadkari said on Thursday.

"We have decided to exempt EVs and all vehicles including autorickshaws, buses, taxis run on alternative fuel like ethanol, biodiesel, CNG, methanol and biofuel, from permit requirements, Gadkari said addressing the Society of Indian Automobile Manufacturers (SIAM) annual convention here.

Urging automakers to focus in this direction, the minister said the demand for EVs could also be created by mandating cab aggregators like Ola and Uber to induct a certain percentage of such vehicles in their fleet.

Earlier, the Group of State Transport Ministers headed by Rajasthan Transport Minister Yunus Khan, recommended the government to exempt green vehicles from Permit Raj.

While requesting the automobile makers to tap the opportunity of EV production, the minister ruled out giving any financial incentive.

"With GST at 12% on EVs, I don't think there is any further need for subsidy. ... we need to think innovatively to bring in that environment. My ministry has prepared a detailed report to raise production of EVs through non-fiscal initiatives in the next five years," Gadkari said, clarifying that the subsidy was not mandatory.