A significant transformation is expected in the transportation sector in the next couple of years as the economic benefits of electric vehicles and alternative fuels like ethanol become apparent, said Nitin Gadkari, Minister for Road Transport and Highways.
“I feel that electric vehicles or ethanol-run vehicles are economically viable in our country. States like Maharashtra have already passed a law for the establishment of charging stations to support the electric vehicle ecosystem. Within a year or so, one can see miraculous changes in the transportation sector,” he said at an interaction with The Hindu Group of journalists here.
Making a case for pollution-free vehicles, he said the move towards electric vehicles and those that run on alternative fuels has gathered pace.
In Nagpur, he said, there are at least 200 electric vehicles and 20 charging stations. In BEST (Brihan Mumbai Electricity Supply and Transport Undertaking), the cost of running a diesel bus is ₹110 per km. In Nagpur, there are Scania AC buses of international standards and the cost is ₹78 per km.
For electric buses, the costs can drop to ₹ 50 per km. Even in the case of cars, there will be significant savings if one moves from diesel to electric, he added.
While highlighting the fall in solar power costs after its rapid adoption, he pointed out that price of Li-ion batteries, meant for electric vehicles, had dropped about 50 per cent in the past one year and would continue to decline.
Push for ethanol
Gadkari also said the government was working on policies to encourage ethanol, which can be easily produced from wheat straw, rice straw, bagasse, and municipal waste, among others. “We are now deciding on third-generation ethanol and by encouraging the use of ethanol in the transportation sector, the import bill (crude oil) can be cut at least by ₹2 lakh crore. Our present import bill is ₹7-8 lakh crore.
“Ethanol will not only be an import substitute, but it will be cost-effective, pollution-free and will help create an industry in rural areas, thereby helping the farmers,” he stated.
Scrappage policy
On the proposed vehicle scrappage policy, Gadkari said it would help increase exports due to availability of material at a lower price after recycling. Also, it will help the government garner ₹10,000 crore of tax revenues per year as a result of the boom in sales in the post-scrappage period.