New Delhi, Mar 6 (KNN) The Economic Advisory Council to the PM (EAC-PM) has recommended implementing a transferable mandate, which prescribes that a specific percentage of automobiles manufactured must be electric vehicles (EVs).

This initiative aims to spur the adoption of electric vehicles (EVs) across the country.

In addition, the EAC-PM suggests boosting the adoption of EVs within government fleets to stimulate demand for electric cars.

Furthermore, the council, in its working paper, recommends incentivising vehicle leasing over outright purchases by introducing a GST rate differential favouring leasing arrangements.

Authored by EAC-PM Chairman Bibek Deroy and Director Devi Prasad Misra, the council's working paper highlights the need for a shift in EV promotion policies. While there's been notable growth in two- and three-wheeler EVs, the uptake of EVs in the car segment has been sluggish.

“The introduction of transferable mandates prescribing for a certain percentage of vehicles manufactured to be EVs will be an efficient way of encouraging adoption of EVs,” the EAC-PM said.

According to the EAC-PM, EVs account for a mere 0.21 per cent of total vehicles and a mere 0.08 per cent of four-wheelers in the country.

Increasing EV usage in government fleets could serve as a catalyst for wider adoption, providing valuable feedback to manufacturers and influencing public perception.

The paper underlines the economic impact of high crude oil prices and emphasises India's commitment to achieving Net-Zero carbon emissions by 2070. Faster EV adoption not only reduces the import bill but also significantly curtails emissions, the paper noted.

India's expenditure on oil imports surged to USD 144.2 billion in FY 2022-23 from USD 113.4 billion in FY22, underscoring the urgency of transitioning to electric mobility.

Climate change imperatives, fluctuating oil prices, and advancements in battery technology are driving the global shift towards electric vehicles.

(KNN Bureau)