NEW DELHI: India is weighing the option of concessional toll rates for electric vehicles as it looks to incentivise adoption of clean mobility solutions, a move may that may be reflected in the revamped toll policy that the government’s transport wing is working on, officials aware of the matter said.
The road transport and highways ministry is ramping up the work on the new toll policy, which may also consider exempting electric vehicles from toll fee or provide up to 50% discount on such tolls for electric vehicles.
This proposal assumes significance amid government’s push to incentivise the adoption of electric vehicles, as it also recently cut goods and service tax on EVs. Transport minister Nitin Gadkari had recently said that the government will not impose a deadline for transition to electric vehicles.
The National Highways Authority of India (NHAI) has sent out the draft toll policy for consultation in the nodal ministry of road transport and highways which will be sent for Gadkari’s approval soon.
“NHAI has suggested several changes in the toll policy. Exemption is one of them,” an official told ET.
The highways ministry had hired Boston Consultancy Group (BCG) to prepare a draft toll policy with NHAI.
A second official said that NHAI had suggested exemption of EVs from toll payment, but it may take away the revenues of NHAI, and private concessionaires may want to be compensated for this loss from the highways building authority. “Providing some sort of concession is a better way, so the revenues of NHAI are protected,” said the official.
“In the draft toll policy, NHAI has suggested that electric vehicles should be given 50% concession on toll rates, so that the government is able to encourage people to buy EVs,” a third official said. “The concession will be applicable for the first five years from the date the policy is announced,” the official said.