Govt. Has Approved 5,645 Electric Buses for 65 Cities: CEO, Niti Aayog

Niti Aayog CEO Amitabh Kant has said that an inter-ministerial panel has approved 5,645 electric buses for operations in 65 cities, a move seen towards environment-friendly mobility.

Previous week, the GST Council headed by finance minister Nirmala Sitharaman decided to cut the tax rates on e-vehicles from 12 percent to 5 percent with effect from August 1, 2019.

“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 Centre has been taking initiatives to promote environment-friendly electric vehicles. In the Union Budget 2019-20, the government recommended additional income tax deduction of Rs 1.5 lakh on the interest paid on loans taken to purchase electric vehicles. Also, certain parts of EVs have been exempted from customs duty to further incentivize e-mobility in the country.

The Centre has also permitted Rs 10,000 crore under the FAME II scheme, which objects to boost faster adoption of such vehicles by right incentives and charging infrastructure.

The government think tank has recommended that two-wheelers below the capacity of 150cc sold in the country after March 31, 2025, should be electric ones only. It also suggested that three-wheelers sold in the country after March 31, 2023, should be electric ones.