Auto companies, grappling with falling sales, have some reason for cheer. Well, at least some of them. After clearing the norms for quadricycles, a segment in which Bajaj is the big player, the government has come up with a scheme for battery-run vehicles, where Mahindra, with its hybrid and electric vehicles, is the only Indian manufacturer.

On Tuesday, Prime Minister Manmohan Singh held a meeting of the high-level committee on manufacturing (HLCM), which discussed use of alternative fuel-based transport — electric and hybrid vehicles — for last-mile transportation.

Pilot projects

The HLCM endorsed the launch of pilot projects for public transport of electric or hybrid vehicles, including three-wheelers and mini-buses, in Delhi. The pilot will be implemented by city-specific special purpose vehicles (SPVs). The first one is expected to start next month in the national capital.

Under the scheme, 10 small light commercial vehicles (4-seaters) and 10 larger LCVs (7-seaters) will be run as feeder services close to metro stations.

Mahindra & Mahindra (Mahindra Reva), the only Indian maker of such vehicles (4-seaters) currently, could also introduce its existing 7-seaters on batteries in the pilot project next month.

Chetan Maini, Chief of Strategy and Technology, Mahindra Reva Electric Vehicles, told Business Line : “I am not privy to the Government meeting, but there are Mahindra products such as Maxximo (LCV) that can be made to run on a battery after a few technical changes,”

He said most LCV manufacturers will have the same advantage in converting their vehicles to electric ones though they will have to invest in technology.

Metro feeders

To begin with, the Government has proposed having 100 LCVs (50 4-seaters and 7-seaters each) for five metro stations in Delhi. The vehicles will be purchased through bank finance by the SPV that will be created by the Delhi Government, an official note seen by Business Line said.

“It will be implemented in five metro stations in phase-I, and will be extended to 10 stations later,” said a Ministry source, adding that the stations would also be provided with solar generation and charging infrastructure.

While the solar charging infrastructure would cost around Rs 1 crore and be funded by the Government, operational expenses would be around Rs 1.5 crore for the five-year period. The financing for the project could be either through the National Clean Energy Fund or Department of Heavy Industry’s budget (Auto R&D Cess Fund), said the internal note.

Earlier, the Government had decided to amend the Central Motor Vehicles Rules to include the quadricycle as an additional vehicle category to be manufactured and registered in India. The development is seen as good news for Bajaj Auto, which had last year unveiled its RE60 quadricycle.

>ronendrasingh.s@thehindu.co.in

Related Topics
comment COMMENT NOW