MoRTH Proposes Exempting EVs from Registration and Renewal Fees

The Ministry of Road Transport and Highways (MoRTH), in its ongoing efforts to support the EV ecosystem, has proposed some new steps. This time, MoRTH has issued a draft notification proposing the exemption of battery-operated vehicles i.e. EVs from the registration fee and its renewal charges.

MoRTH issued this amendment in a statement, “Provided further that, for the Battery Operated Vehicles shall be exempted from the payment of fees for the purpose of issue or renewal of registration certificate and assignment of new registration mark.”

As the state and central government are bringing new policies including incentives and tax exemptions on EV purchase in respective regions, the EV adoption and its domestic manufacturing is taking root finally. EVs have been increasing in the numbers in the country as, India sold 2,36,803 EVs in FY 20-21, which makes 1.3 percent of the total vehicles sold during the period, according to a recent report.

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Earlier in February this year, MoRTH launched a ‘Go Electric’ campaign of the Bureau of Energy Efficiency (BEE) to promote and spread awareness on electric mobility, EV charging infrastructure and clean and safe electric cooking in India. Prominently, that campaign has been launched with an aim to push the country towards 100 percent e-mobility and clean and safe e-cooking.

Just after MoRTH issued the notification of registration fee exemption for EVs, the Karnataka Government has also amended its electric vehicle and energy storage policy to draw more further investments in the e-mobility sector across the state.

The state Industries Department Director R. Ramesh declared in an order issued on Tuesday, “As decided at the May 27 state cabinet meeting, the Karnataka Electric Vehicle & Energy Storage policy of 2017 has been amended to give impetus to the electric mobility sector and attract more investments over the next 5 years.”

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The newly amended policy offers a 15 percent capital subsidy on the value of fixed assets over 5 equal annual payments for 50 acres of land for EV manufacturing enterprises.

In addition to this, the policy also provides a production linked subsidy of 1 percent on turnover for 5 years, starting from the first year of commercial operations.

Similarly, the Delhi Government also launched the ‘Switch Delhi’ campaign in February 2021, as an awareness program to promote the public to adopt electric vehicles (EVs) in the state. The campaign included subsidies and incentives on EV purchases in the state also, all the government officials pledged to use EVs to commute.