Some of the standout recommendations are the suggestion that the Indian government should reduce taxes and interest rates for loans on electric vehicles. In addition to this, the report calls for the capping of sales on conventional cars in a country regarded as being one of the world's fastest growing auto markets.
The government think-tank submitted a 90-page blueprint and outlines that the government in India should open a battery plant by the end of next year, and use taxes generated from the sale of petrol and diesel to set-up charging stations for electric vehicles. The report focuses solely on electric vehicles and represents a clear shift away from the current policy that incentivizes both hybrid vehicles and electric cars.
A spokesman for the report claimed that India's vision is to create a new mobility paradigm that will have a huge impact both domestically and globally. He said: "India's potential to create a new mobility paradigm that is shared, electric and connected could have a significant impact domestically and globally."
The report comes on the back of aggressive measures taken by China last year in which it aimed to push sales of plug-in vehicles, India now intends to leapfrog hybrid technology and is seen by analysts as a radical step by Modi's administration which is seeking ways to cut its oil import by 50% by 2030, and reduce emissions as part of its commitment to the Paris climate treaty. Officials acknowledge the blueprint faces challenges. High battery costs would push up car prices and a lack of charging stations and other infrastructure means car makers, who have been consulted on the proposals ahead of publication, would hesitate to make the necessary investment in the technology.
"If we accelerate electric vehicle growth it will be a disruption for the auto sector and would require investment, but if we're not able to adapt quickly we risk being net importers of batteries," said a government source involved in the plans. "There has been resistance from car makers."
To kick-start the shift, the report suggests bulk procurement of electric vehicles, building standardized, swappable batteries for two- and three-wheelers to bring down their cost and having favorable tariff structures for charging cars.
"Prioritize battery and charging infrastructure development," the report states, while setting a 2018 goal for setting up a 250 megawatt per hour battery plant with an aim to reach one gigawatt of production by 2020.