End of permit raj for electric, alternative-fuel vehicles

New Delhi: Electric vehicles and vehicles that run on alternative fuels such as compressed natural gas (CNG) and ethanol will not require permits to ply on roads, transport minister Nitin Gadkari said on Thursday. He said vehicles that run on bio-CNG are also being considered for the relief.

Gadkari said that all states have given their support to Centre’s move to end permits for such vehicles. He was speaking at the annual convention of Society of Indian Automobile Manufacturers (SIAM).

While the minister did not specify the timeline of the decision’s implementation, sources said it may happen within three months.


A permit is an instrument issued by a state or regional transport authority, allowing the use of a vehicle as per provisions of the Motor Vehicle Act. Various permits required by commercial vehicles include contract carriage bus permit, goods carrier permit and cab permit, among others.

The move to end permit era for eco-friendly vehicles will result in saving time and money and is also likely to encourage fleet owners to add more green vehicles.

Although there would be full exemption from permits for alternative fuel vehicles, hybrid and mild hybrid vehicles will remain out of the purview of the decision.

However, Gadkari ruled out giving any additional incentives on electric vehicles for personal use, saying there is already a GST benefit extended on them. GST on electric vehicles has been kept at 12%.

He said there was no need to further subsidise electric vehicles, but said his ministry was preparing non-fiscal measures to have at least 15% EVs in the country in five years.

He also said electric vehicles imported for testing will be exempted from duties. The exemption will be limited and enable manufacturers to evaluate if these vehicles can be made locally.

Gadkari also said the government was considering removing speed governors from the roads since the emphasis is on better infrastructure and cleaner roads.