The government today proposed to set up a National Mission for Hybrid and Electric Vehicles to encourage manufacturing and selling of alternative fuel-based vehicles. The Budget for 2011-12 also proposed to cut excise duty on development and manufacturing of hybrid vehicle kits to 5 per cent from the existing 10 per cent, besides fully exempting customs and counter-vailing duty (CVD) on import of special hybrid parts.
“The Indian automobile market is the second fastest growing in the world and has shown nearly 30 per cent growth this year.
“To provide green and clean transportation for the masses, National Mission for Hybrid and Electric Vehicles will be launched in collaboration with all stakeholders,” Finance Minister Pranab Mukherjee said while presenting the Budget.
Substantial investments have been made across the world in the field of hybrid and electric mobility, he added.