NITI Aayog reviews EV-related policies, recommends bringing financing under priority sector lending

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The NITI Aayog has recommended bringing financing of electric vehicles under priority sector lending, as it reviewed policies related to EVs, according to a CNBC-TV18 report.

The government policy think-tank has also recommended increasing Faster Adoption and Manufacturing of Hybrid and Electric vehicles (FAME) II subsidy and extending the current timeline of one year to boost demand for electric vehicles.

Consumers would be given a 50 percent incentive for the purchase of electric vehicles under Fame II. Additionally, battery makers and entities operating charging infrastructure could also get 50 percent incentive under FAME II. The policy also encourages battery swapping under FAME II, according to the news report.

The policy mandates that power tariff for charging ports should not be more than 15 percent of the average cost of supply.

NITI Aayog has also recommended streamlining of the goods and services tax (GST) and import duties for battery, cell and components.

The think tank has asked the Ministry of Petroleum and Natural Gas to increase the permit for charging station to 1,000 OMC retail outlets. Currently, 382 retail outlets have been identified for EV charging stations.