Niti Aayog in process of plugging in an ambitious electric car policy

A plug is seen coming from the Chevrolet Volt electric car during the North American International Auto Show in Detroit, Michigan January 13, 2009. REUTERS/Mark Blinch (UNITED STATES) - RTR23CT6

Government think-tank Niti Aayog is outlining an ambitious policy framework that would challenge firms across the country and worldwide to set up factories for electric vehicles, batteries and charging infrastructure.

According to an Economic Times report, a person close to the development said that the Centre is looking to facilitate investment and the possible maturation of technologies in just 100 to 200 days. It will provide land, a relaxation in regulations and the required infrastructure for companies to rope in further investment from Indian and international companies.

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The policy was inspired by Tesla chief Elon Musk's characteristically ambitious target of providing the Australian government with a grid-scale battery in three months or giving it away free of charge if he overshoots the deadline. His challenge was rewarded with a full-fledged contract against stiff competition.

The Economic Times report also mentioned the Faster Adoption and Manufacturing of Hybrid & Electric (FAME) vehicles, which is currently under the Department of Heavy Industries. It is expected to bring about fiscal incentives for electric vehicle manufacturers and attached infrastructure.

India, meanwhile, aims to go fully electric by 2030. The dependence on oil takes a significant chunk of the country’s foreign exchange reserves. The government is also considering tax breaks to make electric vehicles affordable.

Last week, road transport minister Nitin Gadkari warned automakers that he would "bulldoze" them into using alternative fuels whether they liked it or not.

The report states that the scale and schedule for projects have not been worked out yet.