The NITI Aayog in its status quo analysis of electric mobility in India, has recommended that the government should provide subsidy for electric vehicle purchase over and above the existing subsidy scheme for electric vehicle adoption under the Faster Adoption and Manufacturing the Electric Vehicles scheme. Besides this, it recommends that EVs should also be considered under priority lending.
Also, the Niti Aayog has emphasised on the need for creation of non-financial incentives such as priority lanes, reserved parking for EV only vehicles in commercial places and shopping complexes. Besides, incentives for vehicle scrapping financing are needed.
The Aayog has suggested the government to consider issuing mobility bonds while introducing fee-bate concept for funding of policy provisions under which additional taxes could be levied on conventional fuel vehicles citing the example of Madhya Pradesh.
Along with these initiatives, the Aayog further suggested green zones be demarcated within cities to permit only EVs while heavy taxes to be charged on conventional fuel vehicles.
