Big push for electric mobility: 5645 electric buses in 65 Indian cities

The deployment of electric buses across cities in India is part of the Central Government's massive push for electric mobility in our country. As part of this, the GST council has recently announced the reduction of taxes on electric vehicles from 12 per cent to 5 per cent.

By:Published: July 29, 2019 4:39:29 PM
Tata Ultra Electric Bus 660 imageRepresentational Image

In a move which is going to further the cause of reduction of pollution generated from pubic transport, the inter-ministerial committee for Electric Vehicles has sanctioned 5645 electric buses for intracity operations in 65 cities and intercity operations to 8 state transport undertakings according to Niti Aayog CEO Amitabh Kant said the same in a recent tweet. These buses, which are going to be manufactured in India, will be given to select cities and state transport departments at a subsidised rate and are also going to promote ‘Make in India’. This move to introduce electric buses in the arena of public transport is part of the Central Government’s massive push for EV in India.

“The inter-ministerial committee for EVs today sanctioned 5,645 electric buses for intracity operations in 65 cities and for intercity operations to 8 state transport undertakings. This will give huge impetus to automobile sector, clean up our cities & drive Make in India,” Kant said in a tweet.

The Government, as part of its Rs 10,000 crore FAME II scheme currently provides incentives for electric vehicles for commercial purposes along with providing support for charging infrastructure. These incentives, extend to private two-wheelers as well. In the recent budget announcement, the Finance Ministry announced concessions on the loan taken for the purchase of electric vehicles. Also recently, the GST council, accepting the Finance Ministry’s proposal, has reduced taxes on electric vehicles from 12 per cent to 5 per cent. In addition to this, certain parts of electric vehicles have also been exempted from customs duty.

Niti Aayog had earlier proposed all two-wheelers, under 150cc capacity should be converted to all-electric models by March 31, 2025. The independent body has also proposed that by March 31, 2023, all three-wheelers in India should be converted to electric-only models.

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