Centre Proposes Exemption of Electric Vehicles From Registration Renewal Charges

The transport ministry has proposed to exempt electric vehicles from payment of fees for the issue or renewal of registration certificate and assignment of new registration mark.

The move comes in a bid to help adoption of electric mobility in the country, a senior government official said.

The ministry has issued a draft notification in this regard, inviting comments and suggestions from stakeholders on the matter. Rule 81 of the Central Motor Vehicles Rules, 1989, will be amended in this regard.

This is among other measures proposed by the ministry of road transport and highways to encourage adoption of electric vehicles in India.

In December last year, the Centre allowed the sale and registration of electric two-wheelers and three wheelers without batteries, in an attempt to bring down the cost of electric vehicles and boost the battery-swapping industry at the same time.

The proposed rule will apply to all battery operated vehicles, whether two, three or four wheelers.

While India has been attempting to encourage use of electric vehicles in the country, the plan has failed to take off because of inadequate vehicle charging infrastructure and user anxiety, among other reasons.

Transport minister Nitin Gadkari has maintained that India does not need a specific electric vehicle policy and that the switch to electric mobility will occur through “natural progression” as costs of electric vehicles come down on account of increased production.

As per Niti Aayog, government’s policy think tank, making India’s passenger mobility shared, electric and connected can cut its energy demand by 64% and carbon emissions by 37% in 2030.

This would result in a reduction of 156 million tonnes of oil equivalent in diesel and petrol consumption for that year, which, at $52 a barrel of crude, would imply a net saving of about Rs 3.9 lakh crore in 2030.

Source: ET Bureau