Aug 2019 , by , in FEATURES

The Union Budget 2019 aims to make India a global hub of electric vehicle (EV) manufacturing. The new focus on electric mobility is welcome but there are speed bumps ahead.

The Central government has proposed a scheme of investment-linked income tax exemptions to attract global EV manufacturers. The companies will be invited through a competitive bidding process to also set up plants for lithium storage batteries and charging infrastructure.

To incentivize Indian EV manufacturers, the finance minister has moved the GST council to reduce the tax in EVs to 5% from the existing 12%. In addition, the income tax deductions of INR 1.5 Lakh on the electric vehicle loans interest is proposed. The government is also contemplating increasing taxes and vehicle registration fees on the traditional ICE engine vehicles to give a boost to electric vehicle sales.

“We need to prepare a master list of locations within the city and connecting highways, where the charging infrastructure for public as well as private modes of transport will be set up. A rise in the use of electric vehicles in the country is going to impact real estate development,” expressed Arumugham Shankar, COO – Strategic Consulting, JLL India.


  • Smart charging infrastructure over all urban regions and highways across the country will ensure assured and sustainable transition to electric vehicles.
  • Spatial planning of EV charging infrastructure will depend on the property proprietorship and type of land use such as accessibility of power, constructability, environmental conditions etc.
  • Design matters and a terrible charging station design can deter EV adoption instead of fortifying it. A great station plan should be simple to get to, charming to sit at, and impossible to be blocked by other vehicles.

The government anticipates 25 per cent of the overall vehicles on streets to be electric vehicles by 2030, requiring a vigorous electric vehicle (EV) charging infrastructure across the country.

The government think-tank NITI Aayog’s Anil Srivastava hinted about new EV charging related incentives to be announced by the Department of Heavy Industries soon.

The centre plans to set up electric vehicle charging points at 60,000 state-run petrol pumps however, it seems to be an implausible model, given the limited space at petrol pumps and longer charging time of electric vehicles.

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