Government on Thursday approved budgetary proposal to set up national mission for electric mobility (NCEM), which is likely to boost manufacture of electric vehicles. The body will have 25 members from government and industry.

“The mission is going to help the electric vehicle industry. Contribution of electric vehicles in the automobile sector is less than one per cent, but it will increase due to the incentives announced by new and renewable energy ministry,” said R Chandramouli, chief of operations, Mahindra Reva.

Cabinet also approved setting up of a national board for electric mobility by the department of heavy industries, said PIB release. The NCEM will be the apex body for making recommendations in these matters.

National Automotive Board will be a technical adviser and secretariat for the NCEM and NBEM. The MNRE in December had announced cash benefits of Rs 100,000 on purchase of electric cars and Rs 5-6,000 on two-wheelers.