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Government of India drops Electric Vehicle Policy

After a much ado, the government of India has dropped the Electric Vehicle Policy. It was earlier reported that the draft of the electric vehicle policy is ready with the government and is awaiting cabinet approval. The transport minister, Nitin Gadkari said at a press briefing on Thursday; “there is no need for any policy now”. This announcement has given many Indian carmakers a breather who were unprepared for the switchover to electric vehicle technologies. The NITI Aayog Chief Executive, Amitabh Kant was also present at the press briefing by Gadkari.

This announcement is a complete U-turn of the government. The government at multiple times in the past reiterated its ambitious plan to go for a complete switch over to electric vehicles by the year 2030. However, many Indian carmakers had stated that it may not be possible for India to achieve the target.

Electric Car

Amitabh Kant backed the minister by saying; “what we need is just action plan.” He further added while justifying the reason; “Everyday, new technology is coming to the market. Technology is always ahead of rules and regulations. And in India, it becomes very tough to change the rules and regulations, so let there be just actions.”

In the past, the Indian automobile industry had faced uncertainty due to government’s announcement to shift to full EV mobility by 2030. Few companies had shown their willingness to accelerate their plans to meet the target while many expressed their reservations about the possibility in achieving it.

Welcoming the latest announcement of government, Maruti Suzuki India chairman R. C. Bhargava said that the automakers will now have the flexibility to choose a technology they want. He added; “the fact that the government will allow the industry to work on any form of sustainable technology is itself a policy. So, if there isn’t a policy on electric vehicles, it is not a problem at all.

The Chief Executive of Mahindra Electric Mobility Ltd, the country’s largest electric vehicle manufacturer said that the industry needs governments continued support. He added; “we have already stated that the existing FAME (incentive scheme) should continue for another two years and electric vehicles should continue to be taxed at the current level. If these things continue, then there should not be a problem.

At present, India lacks necessary infrastructure like charging stations to support the mass use of electric vehicles. The adoption of new EV technology and efficient battery system along with availability of charging infrastructure need a huge investment. Therefore, it is essential that the government incentivizes the use of electric vehicles and support EV industry for a cleaner and greener mode of transportation.

Story source: As per media reports

Also read: Indian Government rethinks on all-electric vehicles by 2030

Also read: SIAM demands IT deduction and lower GST on Electric Vehicles

Also read: Toyota to launch 10 Electric Vehicles by early 2020

About Abhishek Barmase

Abhishek Barmase is a passionate automobile lover who loves to keep himself updated with the latest development in the Indian Automobile Industry. His love for automobiles made him start his own automobile website, https://indiaautoz.in .

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