Sep 7: Customers opting for alternate fuel option in vehicles such as compressed natural gas (CNG) and ethanol will no longer be required to get permissions for plying them on road. Union transport minister Nitin Gadkari on Thursday said that electric vehicles and vehicles running on alternate fuel will be exempt from permit to ply on roads.
Vehicles running on bio-CNG will also be included for the relief, said the minister while speaking at the annual convention of Society of Indian Automobile Manufacturers (SIAM). A timeline for the implementation of the move hasn’t been revealed. However, reports suggest that the decision could be implemented within three months.
As of now, electric vehicles as well as vehicles using alternate fuels are required to have permits, which are instrument issued by state or regional transport authority that allows the use of vehicle on road. The government is planning to end the permit for eco-friendly vehicles to encourage more users to buy such vehicles.
However, hybrid vehicles that make use of alternate fuel along with gasoline would remain out of the purview of the relief. Besides, Gadkari has also clarified that additional incentives won’t be offered for electric vehicles. At present, users purchasing e-vehicles for personal use enjoys a relaxation in GST, with the GST on e-vehicles kept at 12%.
Duties for vehicles that are imported for testing will also be relieved according to the minister. The transport ministry is aiming to up the share of electric vehicles in the country to 15% in five years. Gadkari also said that the proposal for removing speed governors from the roads is under consideration.