Electric cars being charged in a street. Photo: iStock
Electric cars being charged. Photo: iStock

As the Indian government struggles with a rocketing fuel import bill due to rising crude prices and the falling rupee, it has given a fresh incentive to electric vehicle (EV) manufacturers.

Plans to exempt manufacturers of EVs and automobiles run on alternate fuels from permit requirements were announced by Union Minister for Road Transport and Highways Nitin Gadkari, Press Trust of India reports.

EVs and all vehicles run on alternative fuels such as ethanol, biodiesel, CNG, methanol and bio-fuel, will be exempt from permit requirements.

The minister also said further demand for EVs could be created by forcing ride-sharing operators like Ola and Uber to incorporate a certain percentage of alternatively-fueled vehicles in their fleets. He ruled out new financial incentives to EV manufacturers, citing an already-favourable tax regime.

The government wants to promote eco-friendly vehicles through a scheme called Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME) India, which it launched in 2015. Its second phase will be launched by Prime Minister Narendra Modi today, Friday September 7.

A national target has been set by the government to achieve 100% electric mobility by 2030 and various state governments are wooing electric car manufacturers to invest in their respective states.