Road ministry wants easier licensing for EVs to boost public transport

Electric vehicles (EVs) might soon find it easier to get licences than their traditional counterparts.

 

The Ministry of Road Transport and Highways has proposed a set of non-fiscal benefits, such as creating an ecosystem for them in public transport and shared mobility by allowing easier permits.

 

Sources said the ministry feels a multi-pronged strategy, with complete government ownership, is needed to boost EVs.

 

One proposal is to have a distinct identity for EVs by giving them green licence plates (or number plates). These would allow EVs to be identified easily for preferential parking, concessional toll charges, lower parking fees, and exemption during odd/even days.

 

Another proposal is to encourage transport operators and taxi aggregators to induct more EVs in their fleet. Since intra-city buses and taxis have the highest mileage, they are the best candidates for conversion to electrification. However, this comes with rider — e-buses are 8-10 times more expensive than conventional ones.

 

“Such a high cost of acquisition can be justified only if these buses are utilised at maximum capacity,” said an inter-ministerial discussion note.

 

A source said the ministry feels private ownership of buses along with a guarantee of minimum operation per day from the state government concerned could be the right approach for this.

 

The government could also support the operational viability of EVs for 5-7 years, helping with their induction into the public transport systems. At present, the cost would be Rs 25 a km for every bus, but this will go down as the volume increases.

 

E-buses might also be exempted from permit requirements, helping private players induct these.

 

Another focus for the e-vehicles strategy would be e-rickshaws. These would also be exempted from permits, allowing easier proliferation in last-mile connectivity. E-bikes and e-autos might also benefit from this easier licence regime.

 

EVs are already beneficiaries of lower goods and services tax — 12 per cent, compared to 28-45 per cent for vehicles with internal combustion engine.

 

While the EV strategy is essentially long term, promoting hybrids in the short term is another part of the strategy to reduce the dependence of the country on crude imports.

 

The ministry is of the view that a comprehensive approach for accelerating e-mobility will help achieve reduction in fuel imports and carbon emissions, access to green mobility solutions, growth of the auto sector, and generation of employment.

 

These suggestions were given by a committee under the road secretary earlier to the NITI Aayog.