Government has decided to exempt electric vehicles and automobiles run on alternative fuel from permit requirements. The move is in a bid to boost such vehicles in the country to bring down pollution.

This was stated by Union Minister Nitin Gadkari while addressing the annual convention of Society of Indian Automobile Manufacturers (SIAM) in New Delhi on Thursday.

Urging automakers to focus in this direction, the minister said demand for electric vehicles could also be created by mandating cab aggregators to induct a certain percentage of such vehicles in their fleet.

"We have decided to exempt EVs and all vehicles including autorickshaws, buses, taxis run on alternative fuel like ethanol, biodiesel, CNG, methanol and biofuel, from permit requirements. We have taken the decision to make these permit-free," said the transport minister.

"With GST at 12 per cent on EVs, I don't think there is any further need for subsidy. … we need to think innovatively to bring in that environment. My ministry has prepared a detailed report to raise production of EVs through non-fiscal initiatives in the next five years," Gadkari said clarifying that the subsidy was not mandatory.

His statement comes amid government's efforts to promote eco-friendly vehicles through Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME) India scheme, which was launched in 2015.