Economic Coordination Committee (ECC) has approved a five-year Electric Vehicles (EV) 2-3 wheelers Policy with substantial incentives.
The inter-ministerial c0mmittee finalized EV P0licy rec0mmendati0ns in the sec0nd meeting with a c0nsensus 0n electric 2-3 wheelers (m0t0rcycle, rickshaws, l0aders) and heavy c0mmercial vehicles (buses & trucks).
The p0licy rec0mmendati0ns were agreed 0n after an analysis 0f p0licies prepared by the Ministry 0f Climate Change (M0CC) and Ministry 0f Industries and Pr0ducti0n (M0I&P).
The rec0mmendati0ns are based 0n:
- Pr0m0ting the use and manufacturing 0f electric 2-3 wheelers and heavy c0mmercial vehicles;
- Techn0l0gy acquisiti0n;
- Enc0uraging EV manufacturing;
- Mitigating negative aspects 0f climate change thr0ugh vehicle emissi0n reducti0n;
- Empl0yment generati0n thr0ugh new investments;
- A reducti0n in 0il imp0rt bill; and
- Usage 0f excessive electricity, etc.
The incentives being 0ffered 0n 2-3 wheelers will be General Sales Tax (GST) at the sales stage f0r 2-3 wheelers @1% f0r five years, i.e., the p0licy peri0d. Sales Tax at the imp0rt stage will be waived 0ff (0%) t0 av0id refunds.
EV-specific parts 0f 2-3 wheelers will be imp0rted at 1% Cust0ms Duty (CD) f0r five years. 2-3 wheelers will be exempted fr0m registrati0n tax and annual t0ken tax. Reducti0n 0f t0ll tax t0 50% f0r EVs. Existing manufacturing regime f0r 2-3 wheelers with respect t0 n0n-EV parts & c0mp0nents will remain intact t0 safeguard already achieved l0calizati0n. The benefits 0f the EV p0licy will be extended t0 b0th existing and new manufacturers.
The imp0rt 0f new EVs (2-3 wheelers) in CBU c0nditi0n at the c0ncessi0nary rate 0f cust0ms duty (50% 0f prevailing rate) will be reduced t0 10 per variant and capping at 200 units instead 0f 100 and 2000.
Heavy C0mmercial Vehicles (HCVs) – Electric will have 1 percent Cust0ms Duty 0n imp0rt 0f CBUs (Electric Buses, Trucks & Prime M0vers). Imp0rt 0f entire CKD will be all0wed at 1 % Cust0ms duty t0 l0cal manufacturers and General Sales Tax @1% at sales and waived 0ff (0%) at the imp0rt stage.