Panel backs sops for companies building charging points for EVs
Expenses incurred by manufacturing companies in setting up charging stations for electric vehicles (EV) across the country should be considered an activity within the ambit of corporate social responsibility (CSR), a committee formed under the secretary of the ministry of road transport and shipping has recommended.
The proposal has been made to facilitate adoption of electric mobility in India, where setting up charging infrastructure is becoming a major impediment. Recently, the government-owned Energy Efficiency Services Ltd could not procure enough electric vehicles from Mahindra and Mahindra and Tata Motors because of the lack of charging infrastructure across the country. The committee’s report also said that higher depreciation on electric vehicles is required, along with incentive or weighted deductions for investments in the electric mobility space.
The committee was set up by the government to suggest measures to promote electric mobility in India through non-fiscal incentivization and promote electrification in public transport and last-mile connectivity.
Mint has reviewed a copy of the report, which was submitted to NITI Aayog, the policymaking arm of the Union government.
Other such recommendations from five different ministries— finance, heavy industries, information technology, earth sciences and environment—will also be submitted to NITI Aayog in the near future. It also suggested the government allow accelerated depreciation under the Income Tax Act of 1961 on purchase of electric vehicles, letting businesses quickly deduct the full cost of their investments.