Road tax, registration fee and parking charges exemption for electric and hybrid vehicles!

New Delhi: The Union Cabinet is likely to consider approval of the second phase of FAME India scheme this month to boost clean mobility, with an outlay of Rs 5,500 crore spanning five years, officials said. The scheme in its second phase will offer a bouquet of incentives, such as exemption from paying road tax, registration fee and parking charges for various categories of electric and strong hybrid vehicles.

However, no target has been set for electric vehicle (EV) sales to be achieved over the five-year period of the scheme’s implementation. Instead, the scheme will

focus on boosting demand for EVs and creating the charging infrastructure, said a senior government official.

“No standardisation of batteries is being introduced under the scheme, wherein one type of battery is suitable for any electric vehicle. However, vehicles fitted with only advanced batteries will be eligible for demand incentives. “Moreover, once introduced, the incentives will be subject to annual review due to expected reduction in the battery cost,” another senior official told PTI.

The contentious proposal to impose cess of Rs 500-Rs 25,000 on conventional vehicles dubbed “Feebate” under which EV buyers could avail subsidy

of Rs 25,000 for electric two-wheeler, Rs 40,000 for electric three-wheeler and Rs 50,000 for electric car in the first year of the implementation has also been put on the back burner as of now, the official said.