The federal government has started taking consultations for the New Energy Vehicle (NEV) Policy 2025-30. This policy aims to prioritize local NEV manufacturing, reduce dependency on fossil fuels, and significantly lower greenhouse gas emissions.
The draft policy, developed by the Engineering Development Board (EDB), proposes ambitious goals, including achieving a zero-emission fleet by 2060 and establishing a nationwide charging infrastructure. As part of this initiative, Oil Marketing Companies will be required to install Level 3 chargers at 10 percent of their stations. Additionally, private firms will benefit from tax exemptions and subsidized electricity to encourage the establishment of charging points.
Key incentives outlined in the policy include tax breaks, reduced import duties on NEV parts, and green financing options to stimulate investment in eco-friendly technologies. Specifically, customs duties on NEV parts will be reduced to 1 percent, and fully built units will see a 10 percent duty until 2027. Furthermore, sales tax exemptions will be provided for locally manufactured NEV components.
The policy also addresses environmental sustainability by mandating battery recycling standards and offering incentives for setting up recycling centers. To support the transition to NEVs, custom duty reductions for heavy commercial vehicles are included until domestic production capacity is sufficiently developed.
