The GOI is set to tighten the fuel efficiency norms for vehicles to push automobile manufacturers to expedite the conversion of conventional internal combustion engines (IECs) ro elctric vehicles (EVs). Producing a certain share about 4.6% of EVs will help companies meet the tighter CO2 emission norms.
Recommeding this as part of a 15 point strategy by road transport ministry has mandated fuel efficiency norms that require cars to be 30% more fuel efficient by 2022 which will reduce the CO2 emission. To push supply of EVs and their components, the ministry has recommended granting weighted deduction on the lines of deductions provided for investment in scientific research and development besides disincentivising imports by providing certain degree of protection to domestic manufacturing.
THREE PRONGED PLAN TO BOOST EVs-
A. Pushing Demand-
- No permit for EVs in public transport, taxis, autorickshaws
- Mandate induction of certain percentage of EVs for aggregators and operators
- Allow leasing of EVs for transport operators
- Allow higher depreciation on EVs
- Lending for EVs with lower margin money
B. Increasing Supply-
- Tighten fuel efficiency and emission norms to make auto-makers produce more EVs
- Incentive and weighted deductions for investment in EVs
- Graded duty regime to promote Indian players
C. Creating Ecosystem-
- Preferential treatment for EVs on roads
- Greater spread of charging infrastructure
- Provision of EVs charging in building norms
- Allow CSR for setting up of charging station
Matter Referenced: Times of India, Ahmedabad, Friday, 15th June, 2018.
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