A committee led by Niti Aayog CEO Amitabh Kant has suggested a complete switch to electric two-wheelers and three-wheelers in a phased manner, beginning from March 31, 2023.

A senior government official with knowledge of the decision told reporters that the driving panel on transformative mobility has recommended the banning of all internal combustion engine (ICE) three-wheelers on Indian roads by March 31, 2023 and two-wheelers below 150cc by March 31, 2025 as a part of the bigger plan to create India the manufacturing hub for electric vehicles.

The official further said that the cut-off date will also see the government implement a comprehensive scrapping policy and ‘polluter-pays’ model to promote fast adoption of electric vehicles. At present, around 78.0% of the total vehicles sold in the nation are three wheelers and two wheelers.

The panel has been thinking about doubling the subsidy for electric three-wheelers under the FAME II scheme to Rs 20,000 per kWh to bring the starting prices of electric three-wheelers at par with ICE three-wheelers.

Under the ‘polluter pays’ policy discussed by the Niti Aayog, a fine will be imposed on ICE vehicles, and the funds collected from it will be utilized for providing rebates on the purchase of electric vehicles, charging facilities, and establishing battery units of at least one GW capacity.

After March 31, 2025, all vehicles under the category of two-wheeler below 150cc will have to be electric vehicles powered by lithium-ion batteries.