Lucknow, Jul 15 (KNN) Uttar Pradesh's recently announced scheme to waive registration taxes on hybrid vehicles may face implementation delays, according to a report by ET.

The state transport authority has informed automakers that benefits under this scheme will only apply to vehicles certified under the central government's Faster Adoption and Manufacturing of Electric Vehicles (FAME II) program.

On July 5, the Uttar Pradesh government announced a waiver of registration tax on hybrid cars, extending a concession already available to fully electric vehicles. This move was expected to reduce prices of hybrid vehicles by Rs 1.5 lakh to Rs 3 lakh, depending on the model and variant.

However, a letter dated July 9 from the state transport authority has introduced new conditions, potentially complicating the rollout of these incentives.

The state is now considering aligning its incentives for hybrid and electric vehicles with FAME II guidelines, which could limit the scope of vehicles eligible for the tax waiver.

Some automakers have expressed concerns about the potential inconsistency and confusion that could arise from state policies not aligned with central government initiatives.

In response, the state transport authority is contemplating specifying a price cap to incentivize only certain categories of strong hybrids.

Uttar Pradesh, India's second-largest car market after Maharashtra, accounts for 11 per cent of total car sales in the country. Currently, hybrid vehicles represent less than 1 per cent of the state's car market.

The announced waiver was seen as a step towards promoting eco-friendly transportation, especially in light of hazardous air quality levels during winter months.

The state government has invited carmakers for discussions on the policy, with an initial round of consultations held on July 11. Automakers have been asked to submit written recommendations, and final guidelines specifying price caps and categories for implementing the state's policy on incentivising electric and hybrid vehicles are expected to be announced soon.

This development highlights the complex landscape of automotive policy in India, where state and central government initiatives sometimes diverge.

It also underscores the ongoing efforts to promote cleaner vehicle technologies in a country grappling with air pollution issues.

(KNN Bureau)