The Minister of State in his reply told the House that the Central Government is taking various steps to promote Electric Vehicles. The Central Government has launched the Production Linked Incentive Scheme (PLI Scheme) on May 12, 2021 to promote the battery cell industry in the country. Under this scheme, Rs 25,938 crore has been approved in the budget for the electric vehicle and component industry.
Many companies manufacturing electric vehicles and batteries in the country will benefit from the Production Linked Incentive Scheme. He informed that the GST on electric vehicles in the country has been reduced from 12% to 5%. Due to which the cost of electric vehicles has come down. Not only this, the government has also reduced the GST rate from 18% to 5% on the charging stations used for charging electric vehicles.
The Union Ministry of Transport and Highways has announced that green license plates will be issued to battery-operated vehicles and will also be exempted from permit charges. The ministry has also informed the state governments to do away with the road tax on electric vehicles, which will reduce the initial cost of electric vehicles.
Union Transport Minister Nitin Gadkari has expressed hope that in the next two to three years, the price of electric vehicles will be at par with petrol vehicles. At present, the cost of electric vehicles is much higher than the fuel-powered vehicles, due to which people are hesitant to adopt them. If the price of electric vehicles will come down in a few years, then people will be able to buy them easily.
At present, the GST on electric vehicles is only 5 per cent as against 48 per cent on petrol vehicles. The high cost of lithium, used in electric vehicle batteries, has pushed up the cost of electric vehicles, but higher production of lithium in the future will bring down the price. Due to this, the price of electric vehicles will also see a decline.
At present, 81 per cent of India’s lithium battery requirement is being met by local producers. Research on the development of alternative battery technologies is underway and breakthroughs in this area are expected soon.
The central government expects sales of electric vehicles to be 30 per cent for private cars, 70 per cent for commercial cars, 40 per cent for buses and 80 per cent for two-wheelers and three-wheelers by 2030.
Instead of coal for charging electric vehicles, electricity is being generated from renewable energy sources such as solar and biomass. Apart from this, the technology of green hydrogen is also being developed so that in the coming times, vehicles can be run with hydrogen fuel cells as well.