Government has formulated a separate Mission Plan for electric vehicles (including hybrid vehicles) viz. National Electric Mobility Mission Plan 2020 (NEMMP 2020) which was adopted by the National Council for Electric Mobility (NCEM) in its first meeting on 29th August 2012. The NEMMP 2020 provides a roadmap for facilitating the manufacture and use of electric and hybrid vehicles through a series of interventions in order to support R&D in technology including battery technology, create demand for such vehicles, and to enhance manufacturing of such vehicles significantly by the year 2020. The ultimate objective of NEMMP 2020 is to enhance the energy security of the country and reduce the impact of transportation on environment through electric and hybrid mobility.
The Government has been supporting R&D to promote automotive vehicles, including Green & Clean vehicles through the automotive Cess that is levied on sale of vehicles. The Government provides 200% weighted deduction on income tax for in-house R&D expenditure incurred by companies.
As far as the infrastructure related investments are concerned, it is expected that most of these will come from the industry and the Government will need to invest mainly during the initial pilot project stage for the charging infrastructure.
The above information was given by the Minister for Heavy Industries & Public Enterprises Shri Praful Patel to the Parliament.