EV makers should give significant discount to those scrapping old vehicles: Gadkari

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Union Minister for Road Transport & Highways Nitin Gadkari on August 31 said that buyers who have scrapped their old cars powered by internal combustion engines should be given significant discount offers by electric vehicle (EV) manufacturers. The government intends to have electric vehicle sales penetration of 70% for commercial vehicles and 30% for private cars by 2030 and plans to shift public transport and logistics to 100% electric, , the minister said at a virtual event.

Green hydrogen to be used as a fuel in trucks, busses

Gadkari said that both battery electric vehicle and fuel cell vehicle technologies are complementary to each other and are all set to overtake fossil-run automotive by 2050.

The electric vehicle market is completely consumer-driven, the minister said, adding that indigenous low-cost battery technology, localisation of EV components, and huge domestic demand would further make EV the most affordable means of transport in the coming years. Indian vehicles will be at par with international standards in terms of crash safety, body designs, fuel efficiency and mass emission norms, Gadkari asserted.

Talking about renewable energy, Gadkari said green-hydrogen is the fuel for the future and this will be used as a fuel in heavy long-distance trucks, busses, marine and aviation.

He noted that research in development of low cost electrolyzers and innovative ideas such as utilising municipal sewage water for energy generation should be encouraged. These ideas can completely transform the energy landscape in India, he added.

New scrappage policy to provide 25% rebate on road tax

Gadkari said that India will have a well-established network of vehicle scrapping units to deal with old, unfit and polluting private and commercial vehicles, referring to the recently launched the National Automobile Scrappage Policy,

An official from the road transport and highways ministry said that the Centre will soon ask state governments to provide up to 25 % rebate on road tax for vehicles that are purchased after scrapping old vehicles under the new proposed scrappage policy.

The policy provides for fitness test after 20 years for personal vehicles while commercial vehicles would have to undergo fitness test after completion of 15 years as announced in the Union Budget 2021-22.