The legal framework is quite limited for electric vehicles to operate on a mass scale as envisioned by the government.
Centre to soon unveil policy on electric vehicles and charging infrastructure as government envisions e-mobility by 2030
The policy will provide that charging Electric Vehicles would be a service and not a sale of electricity, which requires a license.
The EESL MD said that the current government regulations do not allow a purchase of new e-cars and so requires leasing out under a hire-purchase agreement.
To promote eco-friendly vehicles, the government has been offering incentives on electric and hybrid vehicles of up to Rs 29,000 for bikes and Rs 1.38 lakh for cars under the scheme in pilot mode.
With the Volvo XC90 launched in India, there are already a number of hybrid vehicles that are available in India. Luxury or not, these come in various forms and from a number of manufacturers.
Further, the concessional excise duty of 6 per cent on specified goods for use in manufacture of electrically operated vehicles and hybrid vehicles, presently available up to this March, is being extended up to another year.
Fearing closure of business, electric vehicle makers have sought government support in the Budget to give a boost to the sector saying the National Electric Mobility Mission Plan 2020 must be implemented at the earliest.
The first electric vehicle pilot project under the aegis of National Electric Mobility Mission Plan (NEMMP) is a step towards government's long-term vision of NEMMP 2020.