Representative image

Amitabh Kant, chief executive officer of NITI Aayog, announced earlier today that a panel comprising members from various ministries has autorized more than 5,500 electric buses that will be deployed across various cities in India. The decision, seen as yet another move aimed at promoting electric mobility in the country, the panel has approved a total of 5,645 electric buses for operations in 65 cities.

In a tweet, Kant said, "The inter-ministerial committee for EVs today sanctioned 5,645 electric buses for intracity operations in 65 cities and for intercity operations to 8 state transport undertakings. This will give huge impetus to automobile sector, clean up our cities & drive Make in India."

The inter-ministerial committee for EV Vehicles today sanctioned 5645 electric buses for intracity operations in 65 cities and for intercity operations to 8 state transport undertakings. This will give huge impetus to automobile sector, clean up our cities & drive Make in India. — Amitabh Kant (@amitabhk87) July 29, 2019

The government has undertaken several measures in the recent past to promote the cause of electric vehicles in the country. Last week, the GST Council reduced the GST rate levied on EVs from the current 12 per cent to 5 per cent. In addition to that, the government also lowered the GST rate for electric vehicle chargers from 18 per cent to 5 per cent. These reduced rates will be applicable from 1 August, 2019.

Also read: Electric scooters in India: Top 5 electric scooters with maximum riding range

Furthermore, in budget 2019, Finance Minister Nirmala Sitharaman proposed income tax deductions of as much as ₹1.5 lakh on the interest paid for electric vehicle loans. The government will offer cumulative benefits worth ₹2.5 lakh to people who buy electric vehicles. This will include the income tax deduction on EV loans along with other tax benefits that will be provided over the tenure of the loan. The Union Budget 2019-20 also included the proposal to exempt specific EV components from customs duty.