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POLICY WATCH : ELECTRIC VEHICLES IN INDIA

Updated: Jan 13, 2020


Brief Analysis (Importance Level : High)


1. INTRODUCTION

  • The government has approved a 10,000 crores programme under the ‘Faster Adoption and Manufacturing of Electric Vehicles in India.

  • The scheme will help in addressing the issue of environmental pollution and fuel security.

  • The GST reduction for electric vehicles from 12% to 5% seeks to increase the number of EV's on roads.

2. INSIGHTS

  • As of today, there are only 250 charging stations in the country and they mostly catering to three-wheelers. To make this transition viable, infrastructure is a key factor.

  • SIAM (Society of Indian Automobile Manufacturers) the nodal body for Indian automobile industry reports that the country currently sells close to 750,000 electric vehicles a year, a majority of these are three wheelers, which sold 6,30,000 units, with 1,26,000 of these three-wheelers.

  • The government aims to see 6 million electric and hybrid vehicles on the roads by 2020 under the National Electric Mobility Mission Plan 2020.

  • Faster Adoption and Manufacturing of Electric Vehicles in India (FAME India Scheme) for improving electric mobility in India.

  • The Union power ministry categorized charging of batteries as a service, which will help charging stations operate without licences

3. CONCERNS

  • India does not have any known reserves of lithium and cobalt, which makes it dependent on imports of lithium-ion batteries from Japan and China.

  • Affordability of e-vehicles (EVs) and the range they can cover on a single battery charge.

  • Private investment in battery manufacturing plants and developing low cost production technology is needed.

  • Providing waiver of road tax and registration fees, GST refunds and free parking spaces for EVs.

  • Need to shift the focus from subsidizing vehicles to subsidizing batteries because batteries make up 50% of EV costs.

4. CONCLUSION

  • This would go a long way in addressing India’s clean fuel ideology and reduce high pollution levels.

  • The government said it is planning to set up a National Mission on Transformative Mobility and Battery Storage to bring clean and connected technologies that can usher in an era of shared and sustainable EV infrastructure in the country.

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