NITI Aayog proposes lottery system for car rationing

India's policy think-tank - NITI Aayog has proposed implementation of a lottery system for purchase of petrol / diesel cars in India. This proposal has been made as part of the country's aim of an all-electric car fleet from 2030.

NITI Aayog, which is chaired by Prime Minister Narendra Modi, has published a 134-page long report on transformative mobility solutions, which has been co-authored by U.S. based consultant Rocky Mountain Institute. It mentions three major changes that should be made in the country's transportation system - shifting from private vehicle ownership to shared mobility solutions, ditching fossil fuel powered cars in favour of electric vehicles and transitioning from cities that are designed for cars to cities designed for humans.

The report proposes that implementing a lottery system for buying petrol / diesel cars will help in limiting the number of fossil fuel powered cars in the country. This will lower pollution levels in the major cities and will also help in minimising fuel import costs. Official estimates suggest that India can save $60 billion in energy costs and one gigaton of carbon emissions between 2017 and 2030, by adopting a switch from petrol/diesel cars to EVs.

The report also mentions various steps that need to be taken to motivate people to invest in electric cars. These include fiscal and monetary incentives, proper infrastructure support, lower interest rates for electric vehicles and establishment of a consortium that can manufacture standardised batteries and common components to bring down initial cost of buying an electric car.

Source: Reuters