New Delhi:  The Delhi government is set to promote sales of battery-operated vehicles to help improve air quality in the capital region.

The state government has been buoyed by the success of battery-operated buses in the Chandni Chowk area of the walled city. Besides bringing down pollution levels, the vehicles have to a certain extent decongested the three-kilometre stretch connecting Red Fort with Fatehpuri Mosque after a decision was taken to ban cycle rickshaws in the area.

The state Cabinet, during a meeting chaired by Chief Minister Sheila Dikshit, decided to extend relief to the tune of 30 per cent of costs to those opting for battery-operated vehicles.

While showrooms selling such vehicles will get subsidies of nearly 15 per cent on indigenously manufactured vehicles, the buyers stand to get back 12.5 per cent of Value-Added Tax (VAT) from the environmental development fund. Prospective owners of the vehicles will also get rebate of two per cent on registration and one-time road tax levied at the time of registration.

Several Indian manufactures recently launched battery-operated scooters while there is at least one battery-operated car available in the country. Other companies, buoyed by the growing popularity and low running costs of the vehicles, are set to jump into the fray.

Delhi's overall air quality has shown tremendous improvement over the past three years after compressed natural gas fuel was made mandatory for commercial vehicles. Delhi is no longer counted among the most polluted cities of the country. Battery-operated vehicles are considered still better because emissions are practically nil.

The rebate announced by the Delhi government, however, will not be applicable to China-made battery-operated scooters which have started flooding the domestic market.