New Delhi:

The Indian government has drafted a plan to levy a fee of Rs 12,000 ($171.09) on new petrol and diesel cars in an attempt to boost the manufacturing of electric vehicles (EV) and battery-driven automobiles, the Times of India reported on Wednesday.


Under a new policy that is nearing finalisation, National Institution for Transforming India (NITI), a government policy think-tank, has proposed incentives of up to Rs 25,000 -50,000 be directly transferred to EV buyers, ensuring that gains are not pocketed by auto manufacturers, government officials told TOI.


New incentives will be proposed along with other benefits such as lower customs duty, goods and services tax on raw material, components and battery packs, waiver of registration fee and road tax for all EVs, according to the report.
The proposed incentives for EV owners will be trimmed to rs 15,000 from Rs 50,000 by the fourth year of the policy implementation, the daily reported.


Citing a source, the Times of India stated that part of the surcharge will be used to encourage domestic battery production and that the government plans to spend about two billion rupees for developing indigenous technology in power electronics and battery development.


NITI Aayog did not immediately respond to Reuters' request for comment.