In a move that could boost the sales of electric vehicles (EVs) and vehicles which run on alternative fuel, Nitin Gadkari, the transport minister stated that such vehicles will not require additional permits to ply as commercial vehicles on Indian roads, as reported by NDTV and The Economic Times.
Alternative fuel refers to CNG (compressed natural gas) and ethanol.
According to the report, the new guidelines could be implemented by the end of this year.
The transport minister also stated that vehicles which use bio-CNG as fuel could also be considered under the purview.
This new directive will apply to all categories of EVs and those using alternative fuels, including buses, autos, cars, etc.
The government has been trying to promote the use of environment-friendly vehicles. The decision to remove permits could also result in EVs being used by cab aggregators.
The minister, however, stated that no additional incentives will be given to EVs purchased for personal use. Such vehicles currently enjoy a lower GST of 12 per cent, with regular vehicles paying over twice this GST rate.
The government will also help establish sufficient infrastructure for the use of vehicles which run on alternate fuels, with plans afoot to set up 10,000 CNG filling stations by 2030.
Sources: Economic Times, NDTV, LiveMint.