New Delhi, Aug 14 (IANS): The government said Friday it is studying a proposal for creating a market, developing domestic technology and manufacturing of a full range of cleaner electric vehicles in the country.

According to Ministry of Heavy Industries and Public Enterprises, the union cabinet is looking at the National Electric Mobility Mission 2020 which has been proposed for expenditure finance committee (EFC).

The Mission plan projects a potential for six-seven million units of new electric vehicles sales which will result in fuel savings of 2.2-2.5 million tonnes that can be achieved by 2020.

The proposal includes development of mild hybrid, full hybrid vehicles (HEVs), plug in hybrids (PHEVs) and pure electric vehicles (BEVs).

"The mission envisages demand incentive scheme for faster adoption of Electric Vehicles. An inclusive approach has been proposed in the scheme and all vehicle segments come under the purview of the incentive scheme," Pon. Radhakrishnan (Minister of State), Heavy Industries and Public Enterprises ministry said in a written reply to Rajya Sabha.