Under the National Electric Mobility Mission Plan 2020, which was announced by the government in 2011 but is still to be rolled out, the electric vehicle manufacturers are to get incentives worth Rs 14,000 crore over the next six years.
"NEMMP 2020 has reached the final leg of approvals. We expect it to be implemented in the next 3-5 months. It will help the industry to recover," Society of Manufacturers of Electric Vehicles (SMEV) Director Sohinder Gill said.
If implemented, the plan would lead to a flurry of electric vehicle launches in the next 2-3 years in the country, leading to exponential growth of green cars on the Indian roads, he added.
"The target of the plan is to have 6-7 million electric vehicles on the Indian roads by 2020. It will help save 2.2-2.5 million tonnes of fuel," Gill said.
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Elaborating further, he added that lack of incentives from the government has led to a drastic fall in sale of electric vehicles over the past few years in the country.
The decline in sales over the years has also led to closure of various manufacturers and loss of several jobs in the sector, he added.
"Ever since the withdrawal of MNRE subsidy..Has resulted in loss of thousands of jobs that were created and has put capital of more than Rs 1,000 crore at risk," Gill said.
When asked about the electric-rickshaws, Gill said the government needs to put in place effective regulations as quickly as possible as the delay would lead to severe problems including safety issues in big cities in the next few years.
SMEV, which has over 20 members, including Hero Electric and Mahindra Reva, was formed in 2008.