Tamil Nadu amends policy to enable registration of E-Auto-Rickshaws, E-Taxis

The Government of Tamil Nadu has issued an order stating that all Passenger Vehicles, which are battery-operated (as defined under clause (u) of rule 2 of the Central Motor Vehicles Rules, 1989, like E-auto-rickshaws, E-taxis and private EV buses) or Passenger Vehicles that are driven on methanol or ethanol fuel, shall be issued permits by the Transport Department without a permit fee. 

Registration of EVs plying as passenger transport, like E-auto-rickshaws, E-taxis and EV buses will now commence in Tamil Nadu. 

Earlier, permits were not being issued to battery-operated Passenger Vehicles and Passenger Vehicles driven on methanol or ethanol fuel. 

The Ministry of Road Transport and Highways, Government of India, had issued a notification in 2018 stating that battery -operated Passenger Vehicles and Passenger Vehicles driven on methanol or ethanol fuel were exempted from obtaining a permit, with the intention of promoting green vehicles. 

As the implementing authority, the Transport Commissioner of the Government of Tamil Nadu had pointed out that without the process of registration and issuing of permits, there will be regulation issues and field problems.

It may be noted, during a roundtable organised by Guidance Tamil Nadu on June 16, 2023, members of the EV industry apprised the Honourable Minister for Industries, Dr. TRB Rajaa, of this issue.

The Minister immediately requested the intervention of Chief Minister MK  Stalin, who instructed that appropriate orders be issued at the earliest for facilitative regulation to make battery-operated shared passenger vehicles operational on the ground.

On June 28, 2023, Principal Secretary to the Government, Transport Department, P Amudha, issued an order (G.O.(Ms).No.319) stating that all transport vehicles which are  battery-operated or are driven o  methanol or ethanol fuel (except Goods vehicle whose  Gross Vehicle Weight is below 3000 kgs) shall be issued a permit by the Transport Department without a permit fee. This has plugged an important policy gap and will facilitate the expansion of EV fleets in Tamil Nadu.

Speaking on the development, Rajaa said, “This is an example of how receptive this government is to the needs of the industry. We are able to execute policy changes quickly due to the effective leadership of Honourable CM Thiru MK Stalin, who enables us to solve problems that are brought to us in a timely manner.”

This amendment will enable the government to implement its Electric Vehicle Policy 2023 by accelerating the adoption of EVs in Tamil Nadu. “Based on feedback from the industry, we are also working on improving EV charging infra across Tamil Nadu. All these steps are sure to significantly drive up the demand for EV vehicles in the state,” said the Minister.