Executive Summary:
The Ministry of Road Transport and Highways addressed questions regarding the transition from diesel to alternative fuel vehicles. The response outlines existing norms, incentives, and initiatives to promote electric and non-fossil fuel vehicles. The government has no current proposal to restrict the movement or phase out diesel vehicles.
Key Points / Main Content:
BSVI and Alternative Fuels:
• BSVI norms for fuel and vehicles were notified via G.S.R. 889E on September 16, 2016.
• E20 was notified as a mono fuel for all vehicle categories via G.S.R 27 E, on January 5, 2024.
• Mass emission standards have been notified for vehicles running on non-fossil fuels.
Production Linked Incentive (PLI) Scheme:
• PLI Auto provides incentives for advanced automotive technology (AAT) vehicles and components.
• Champion OEM applicants receive incentives of 13% to 18% on incremental sales of AAT vehicles.
• Component Champion applicants receive incentives of 7.2% to 13% on sales of AAT components. An additional 5% incentive is provided for AAT components of battery electric vehicles.
• Minimum Domestic Value Addition (DVA) of 50% is required for availing incentives.
Electric Vehicle (EV) Promotion Initiatives:
• Battery-operated transport vehicles are exempt from permit requirements (S.O. 5333E, October 18, 2018).
• Battery-operated vehicles are exempt from registration and new registration mark fees (G.S.R. 525E, August 2, 2021).
• All India Tourist Permit granted for battery-operated vehicles without permit fees (G.S.R. 302E, April 18, 2023).
• Retrofitment of hybrid electric systems or electric kits to vehicles is facilitated (G.S.R. 167E, March 1, 2019).
• Battery-operated transport vehicles have yellow registration marks on a green background; all other battery-operated vehicles have white marks on a green background (G.S.R. 749E, August 7, 2018).
• States and UTs were advised regarding the sale and registration of two-wheeled EVs without batteries (August 12, 2020).
Diesel Vehicle Restrictions:
• There is no proposal under consideration to restrict the movement or phase out diesel vehicles.
Impact Analysis:
Automobile Manufacturers:
• Impact: The PLI scheme offers financial incentives for manufacturing advanced automotive technology vehicles and components. The standardization for alternative fuels impacts the manufacturing and development of vehicles.
• Action Required: Understand and apply for the PLI scheme, adhering to DVA requirements. Stay informed about mass emission standards for alternative fuels.
Auto Component Suppliers:
• Impact: The PLI scheme incentivizes the production of AAT components.
• Action Required: Understand and apply for the PLI scheme, focusing on AAT components, particularly for battery electric vehicles.
Electric Vehicle Owners:
• Impact: Reduced costs due to exemption from permit and registration fees. Easier travel due to All India Tourist Permit.
• Action Required: Be aware of the registration mark color scheme for EVs.
State and UT Transport Authorities:
• Impact: Implementation of revised registration processes and permit exemptions for EVs.
• Action Required: Adhere to the advisory regarding the sale and registration of two-wheeled EVs without batteries.
Citizens/Consumers:
• Impact: Increased availability and affordability of electric and alternative fuel vehicles.
• Action Required: Consider the option of retrofitting existing vehicles with hybrid or electric kits.
Key Entities Referenced
Ministry of Road Transport and Highways: The Indian government ministry responsible for the formulation and administration of rules, regulations and laws relating to road transport, national highways and transport research.
SHRI PRADYUT BORDOLOI: Member of Parliament who raised the question regarding migration to alternative fuel vehicles.
SHRI NITIN JAIRAM GADKARI: The Minister of Road Transport and Highways who answered the question in the Lok Sabha.
BSVI norms: Emission standards for fuel and vehicles in India, notified vide G.S.R. 889E dated 16th September, 2016.
E20: A mono fuel notified vide G.S.R 27 E, dated 5th January, 2024 for all category of vehicles.
Production Linked Incentive PLI Scheme for Automobile and Auto Components PLI Auto: A scheme providing incentives for advanced automotive technology vehicles and components, promoting domestic manufacturing in India.
Electric Vehicles EVs: Battery operated transport vehicles which are being promoted by the government through various notifications and exemptions.
All India: Refers to tourist permits for battery-operated vehicles across all of India, granted without permit fees, as per G.S.R. 302E dated the 18th April, 2023.
GOVERNMENT OF INDIA
MINISTRY OF ROAD TRANSPORT AND HIGHWAYS
LOK SABHA
UNSTARRED QUESTION NO. 1893
ANSWERED ON 31st JULY, 2025
MIGRATION TO ALTERNATIVE FUELS VEHICLES
1893. SHRI PRADYUT BORDOLOI:
Will the Minister of ROAD TRANSPORT AND HIGHWAYS
सड़क परिवहन औि िाजमार् ग मंत्री
be pleased to state:
(a) whether the Government is considering stricter norms along with
incentives for transition from diesel to electric or alternative fuel
vehicles and if so, the details thereof;
(b) whether the Government is proposing to establish guidelines for
restricting movement of diesel vehicles across the country and if
so, the details thereof; and
(c) whether the Government proposes to phase out or restrict the
use of diesel vehicles in a time-bound manner and if so, the details
thereof?
ANSWER
THE MINISTER OF ROAD TRANSPORT AND HIGHWAYS
(SHRI NITIN JAIRAM GADKARI)
(a) The Government in the Ministry of Road Transport and
Highways notified BS-VI norms for fuel and vehicles vide G.S.R.
889(E) dated 16th September, 2016 by leapfrogging from BS-IV.
The Government also notified E20 as a Mono fuel vide G.S.R 27
(E), dated 5th January, 2024 for all category of vehicles.Further, to facilitate the development of Motor Vehicles
running on non-fossil fuels like CNG, Bio-CNG, LNG, EV, Biofuels,
etc. the Government has notified mass emission standards in
respect of blends of ethanol with gasoline, flex-fuel, Biodiesel,
Bio-CNG, Liquefied Natural Gas (LNG), blends of Methanol with
gasoline, dual fuel, Hydrogen etc.
The Production Linked Incentive (PLI) Scheme for
Automobile and Auto Components (PLI Auto) provides for
incentive of 13% to 18% on determined (incremental) sales of
advanced automotive technology (AAT) vehicles to applicants
under Champion OEM category, and incentive of 7.2% to 13% on
determined sales of AAT components (additional 5% incentive is
provided for AAT components of battery electric vehicles) to
applicants under Component Champion category. The scheme
mandates minimum Domestic Value Addition (DVA) of 50% for
availing incentives under the scheme which promotes
manufacturing in India across the automotive supply chain.
Government has taken following initiatives to promote adoption
of Electric Vehicles (EVs) in the country:
(i) Notification issued vide S.O. 5333(E) dated the 18th October,
2018 to grant exemption from the requirements of the permit to
the battery operated transport vehicles.
(ii) Notification issued vide G.S.R. 525(E) dated the 2nd August,
2021 to grant exemption of Battery Operated Vehicles from
payment of fees for the purpose of issue or renewal of
registration certificate and assignment of new registration
mark.
(iii) Notification issued vide G.S.R. 302(E) dated the 18th April,
2023 to grant All India Tourist Permit for battery-operated
vehicles without payment of permit fee.
(iv) Notification issued vide G.S.R. 167(E) dated the 1st March,
2019 to facilitate retro-fitment of hybrid electric system or
electric kit to vehicles.(v) Notification issued vide G.S.R. 749(E) dated the 7th August
2018 enabling registration mark of Battery Operated Vehicles in
Yellow colour on Green background for the transport vehicles
and for all other cases, in White colour on Green background.
(vi) Further, an advisory dated 12th August 2020 has been
issued to all States and UTs regarding sale and registration of
two-wheeled Electric Vehicles without batteries.
(b) and (c) No such proposal is under consideration.
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