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Home / India News / Govt proposes registration fee waiver to boost electric vehicles usage

Govt proposes registration fee waiver to boost electric vehicles usage

The Centre’s has set a target to have 30% electric vehicles on the roads by 2030.

india Updated: Jun 19, 2019 23:16 IST
Anisha Dutta
Anisha Dutta
Under a new government proposal  electric vehicle will be exempted from registration charges.
Under a new government proposal electric vehicle will be exempted from registration charges.(Mint File Photo)

The Union ministry of road transport and highways has proposed to exempt registration fees for electric vehicles as an incentive for transitioning towards battery-operated vehicles.

The ministry has issued a draft notification, a copy of which has been reviewed by Hindustan Times for providing a differential registration fees for electric vehicles to be charged under the Central Motor Vehicles Rules, 1989.

This comes in the backdrop of Centre’s target to have 30% electric vehicles by 2030. Electric vehicles are also less polluting than those which run on fossil fuel.

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

At present, vehicle registration fees under rule 81 of the CMVR, vary from Rs 300 for three wheelers/quadricycles/ light motor vehicles to Rs 1000 for medium passenger motor vehicle to Rs 1500 for heavy passenger motor vehicle and Rs 5000 for imported motor vehicles.

The National Democratic Alliance (NDA) government had launched the first phase of the Faster Adoption of Electric (&Hybrid) vehicles in India (FAME) in 2015 for the promotion of electric mobility in the country. This was initially for a period of two years and has subsequently been extended till March, 2019. All electric and hybrid vehicles, including public transport, registered under the scheme were incentivized under the demand creation focus area of this scheme.

“Department of heavy industries is now going after FAME 2 in a big way. There is a time slot over which two-wheelers and three-wheelers and later even four-wheelers will get converted to EVs. 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,” Niti Aayog primary member VK Saraswat said.

The policy think-tank as also proposed to make mandatory for all commercial cars to go electric from April 2026. The proposal, however, had been criticised by automobile associations who called for a “practical approach” to usher in electric mobility.

The NDA government had earlier issued a notice mandating registration marks for electric vehicles to be on a plate with green background. The Centre had also exempted battery operated transport vehicles and vehicles running on ethanol and methanol fuels from requirement of permits.

The Centre had also notified certain specifications for the allowing minors in the age group of 16-18 years to drive gearless E scooters/ bikes up to 4 KW.