Rumour: Only electric vehicles to be sold from 2030

According to a media report, the Niti Aayog has proposed that only electric vehicles (EVs) should be sold after 2030. This proposal comes almost a month after the proposal to mandate the sale of only electric 2-wheelers in India by 2025 and banning the sales of conventional motorcycles up to 150cc.

Reports suggest that the Niti Aayog has also proposed the Road Transport and Highways ministry to prepare a framework to phase out the sale of petrol and diesel vehicles by 2030. The proposal also includes setting up a pilot program for e-highways equipped with an overhead electric cable network for trucks to operate as fully electric vehicles. A similar project is being operated on a pilot basis in Sweden and Germany.

The government also plans to manufacture batteries on a large scale by 2030. It has proposed extending incentives for battery manufacturers with annual subsidies estimated to amount to Rs. 8,000 crore. 

According to the proposal, the maximum cash subsidy would be for up to 20 GWh per company. For 100% domestic value capture, the cash subsidy will be Rs. 2,000 per KWh and for 60% domestic value capture it will be Rs. 1,200 per KWh. The companies would have to reach the target production of at least 5 GWh in 5 years. If this condition is not met, the cash subsidy will be reduced.

Source: Economic Times