Government’s long-term intent for green motoring not visible: SMEV

In his comments on the Union Budget 2016-17, Sohinder Gill, director, Corporate Affairs, Society of Manufacturers of Electric Vehicles (SMEV), has said that he would like to see further action in terms of infrastructure build up and ground level regulatory support for promotion of e-vehicles on a stable and long term basis.

He said, "The introductory statement by Arun Jaitley that commitment to cleaner environment is one of the fundamental operating principles of this year’s Budget is laudable but the long-term intent to promote greener solutions such as promotion of e-vehicles is not very visible in this year’s budgetary exercise. 

I was certainly hoping for greater budgetary support for the e-vehicle eco-system. There is no real clarity on the fund allocation for promotion of e-vehicles either or specific budgetary support for green vehicle infrastructure creation for the year 2016-2017.

On the positive side, Jaitley’s decision to continue with a concessionary taxation regime for electric vehicles is in sync with budgetary objectives. We welcome the decision to continue with the nil BCD and 6% excise/CVD regime on parts of electric vehicles and hybrid vehicles beyond March 31. The customs and excise duty concessions on specified parts of electric vehicles / hybrid vehicles have also been extended.

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These measures should act as a positive catalyst to incentivise the nascent e-vehicle industry in the country and will eventually encourage people to migrate to greener mobility solutions. The

decision to exempt electrically operated vehicles, hybrid vehicles and hydrogen vehicles from infrastructure cess is prudent and most welcome.

At the same time, the government’s move to dis-incentivise fossil fuel-based vehicles with higher taxes is also welcome and complements the thrust for green and clean transport solutions. We believe that the time has come to gently but surely start pushing out the hugely polluting vehicles out of the eco-system.

We would like to see further complementary action in terms of infrastructure build-up and ground level regulatory facilitations for promotion of green vehicles. Currently, the e-vehicle infrastructure such as charging stations at convenient city points is almost non-existent in cities. The government needs to focus on creation a robust infrastructure for e-vehicles. We also expect government to express its long-term commitment to the NEMMP policy so that the industry can plan their strategies and investments accordingly. The absence of this long-term commitment has left all manufacturers in a dilemma as to whether to invest heavily in this sector or to move from year to year, waiting for a clearer 5-year horizon."

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