india

Updated: Jun 20, 2019 07:38 IST

The ministry of road transport and highways on Wednesday issued a draft notification, a copy of which has been reviewed by HT, which proposes to exempt electric or battery-operated vehicles from paying registration charges by amending the Central Motor Vehicles Rules (CMVR), 1989. The proposal comes in the backdrop of the Centre’s target to ensure an at least 30% shift to electric vehicles by 2030.

At present, vehicle registration fees are Rs 300 for three wheelers/quadricycles/light motor vehicles, Rs 1,000 for medium passenger motor vehicles, Rs 1,500 for heavy passenger motor vehicles and Rs 5,000 for imported motor vehicles.

“We have issued a draft notification for amendments in CMVR, where an amendment in Rule 81 is proposed so that battery-operated vehicles will be exempted from payment of fees for issue or renewal of registration certificates and assignment of new registration mark. Electric vehicles will, thus, be exempted from such registration charges. We have sought comments and suggestions from stake-holders. A time-frame of 30 days is given for providing any objection or changes,” an official said, requesting anonymity.

In 2015, the National Democratic Alliance government had launched the first phase of the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles, India, or FAME – India, scheme for the promotion of electric mobility. This was initially for two years and was extended till March 2019. On April 1, the second phase of FAME – India was launched with a Rs 10,000-crore outlay “for faster adoption of electric mobility,” as per a GO.

“There is a major push in Niti Aayog to bring in the infrastructure for electrification, both in terms of charging stations and ensuring we have enough infrastructure for converting. As per FAME 2, we are incentivising start-ups and others who would like to get into this sector. Taxation has also come down on EV components,” said VK Saraswat, primary member Niti Aayog.