There has been a significant increase in the prices of oil and gas at the global level and the impact of the same has been felt in our country. The recent massive increase in the prices of petrol, diesel, gas have again brought in to focus the need for development of alternative means of surface transportation. Also environmental issue and climate change aspects are becoming crucial and there is a need for reducing vehicle emissions, it is imperative and necessary measures by taken to increase the use of eco friendly vehicles which reduce noise, air pollution and also help to conserve / supplement fossil fuels. As a part of the overall programme for development of alternative means of fuels of surface transportation, MNRE GOI is supporting the Battery Operated Vehicles Programme and assistance in the form of capital grant / subsidy is provided.

1. Support for dissemination of all types of Battery Operated Vehicles (BOVs), Plug Hybrid Vehicles(PHEVs), Hybrid Electric Vehicles (HEVs) and Electric / Exercise-Bike Generator Inverter (E2BI) for their usages by users for surface transportation.
   
   
2. Support for Research & Development projects on advanced high energy density batteries, ultra capacitors, control systems and other components for battery operated electric, plug hybrid and hybrid electric vehicles for surface transportation.
   
   
3. Support for pilot project on technology demonstration for Battery Operated Vehicles, Plug Hybrid Vehicles, Hybrid Electric Vehicles and Electric/Exercise- Bike Generator Inverter (E2B1) for field performance evaluation and leading to commercialization.
4. Support for projects and activities related to awareness promotion through education and training, organization of business meet and seminars/conferences/symposia in the area of electric vehicles, plug hybrid vehicles and hybrid electric vehicles. etc.

Dissemination of Battery Operated Two, Three and Four wheelers during the year 2011-12. Central Financial Assistance is given in Table-I.

The other technical features of battery operated vehicles are :

1. Types of BOVs/ HEVs/ PHEVs and Pattern of Subsidy covered under the Programme – 2wheeler/3 wheeler/4 wheeler.

   The existing scheme has been made more effective in order to have wider coverage for propagation of BOVs/ HEVs/ PHEVs through inclusion of all categories of users battery operated two wheelers/ 3 wheelers/4 wheelers under the scheme, expansion of eligible categories of users of such vehicles to all type of users and routing Central Financial Assistance(CFA) through Indian Renewable Energy Development Agency (IREDA) and State Nodal Agencies (SNAs) on reimbursement basis to the manufactures. Thus it covers all categories of Indian individuals and institutional users.

2. Implementation Methodology

   i) The programme will be implemented through the Indian Renewable Energy Development Agency and State Nodal Agencies. Proposals for reimbursement should be prepared and submitted to the Ministry of New and Renewable Energy in accordance with the proforma quarterly along with the prescribed terms & conditions and with an undertaking from the vehicle owners that the vehicles will be properly operated & maintained and that these vehicleswill not be sold or disposed off for a period of at least five years from the date of supply.The respective Implementing Agencies must ensure that adequate infrastructure including battery charging facility exists in order to ensure regular operation of BOVs / HEVs/ PHEVs and submit Quarterly Progress Reports.

   ii) Proposal received from State Implementing Agencies and IREDA will be processed on first-come-first-served basis and sanctioned, if found in order, by MNRE.

3. Release of Central Financial Assistance:

   MNRE will release subsidy to the Implementing Agencies on reimbursement basis after receiving the Progress Report Implementation / sale of the vehicles. The concerned Implementing Agency will disburse the subsidy to the manufacturers without any further delay. The Ministry will also release an implementation charges @ 3 % of the released Central Financial Assistance to the concerned Implementing Agency.