Transcending its way in the last months of 2022, carbon neutrality has come up as the ultimate goal of every country as well as enterprises that aims to scale up.
Adopting electrification on a mass scale is one of the first steps towards achieving net carbon neutrality and represents the future of the automobile industry.
Following the results of the latest report, the EV market in India is expected to reach USD 206 billion by 2030, if India maintains a steady approach toward transitioning to electric mobility.
Keeping this in consideration, India’s government has taken a few steps and has laid out a few schemes that support the acceleration of the electric vehicle (EV) switch in the local mobility market.
Looping in the huge budget kept aside for pumping the EV market and infrastructure at high speed, Government Initiatives for EVs in India go a little more detailed than just subsidy cuts on EV purchases.
Counting some of the most popular schemes initiated under Government Initiatives for EVs in India to scale up the electric mobility industry, let’s check out these schemes in a brief description.
Government Initiatives for EVs in India
Faster Adoption and Manufacturing of Electric Vehicles (FAME)-I & II
Kicking off one of the first national-level schemes on Electric Vehicles Fame India Scheme has introduced to mind the never-ending pollution that was happening due to the vehicles which are operated through diesel and petrol.
First launched by DHI in 2015, the first phase of this Government Initiatives for EVs in India scheme has already ended and now phase two of the scheme is in operation started according to which the Government of India will be giving out 670 electric buses in the states of Maharashtra Goa Gujarat, and Chandigarh.
FAME-II implementation is set for 3 years, which is effective since 1st April 2019 with a budget allocation of 10,000 Cr including spillover from FAME-I of Rs 366 Cr.
According to NITI Aayog’s one-stop portal for any EV-related information, e-AMRIT, Department of Heavy Industries has also approved 2636 charging stations in 62 cities across 24 States/UTs according to Government Initiatives for EVs in India.
Phased Manufacturing Programme (PMP)
Charging electric mobility to the next level, a phased manufacturing roadmap has been developed, considering the current state of the manufacturing ecosystem in the country.
According to this, indigenous manufacturing of electric vehicles, their assemblies/sub-assemblies, and parts, sub-parts or inputs of the sub-assemblies will be highly promoted over time through a graded duty structure to support the Government Initiatives for EVs in India.
National Mission on Transformative Mobility and Storage
Another popular initiative under Government Initiatives for EVs in India includes National Mission on Transformative Mobility and Storage whose purpose is to drive strategies for transformative mobility and Phased Manufacturing Programmes for EVs, EV Components and Batteries.
According to e-AMRIT, the mission of this initiative is to improve air quality in cities while reducing India’s oil import dependence and upgrading the uptake of renewable energy and storage solutions
Laying down a detailed strategy and roadmap, the mission will enable India to leverage its size and scale its development according to a competitive domestic manufacturing ecosystem for electric mobility.
Other Government Initiatives for EVs in India
Apart from Government Initiatives for EVs in India that were allocated at the national level by the central government, other incentives and subsidies offered included,
- The government reduced the GST on EVs and chargers as well as charging stations from 12% to 5% and from 18% to 5%, respectively.
- Ministry of Power released a notification regarding charging infrastructure standards while permitting the set up of private charging at residences and offices.
- Another initiative includes that all battery-operated vehicles are to be given green license plates and will be exempted from permit requirements.
- Road Tax was waived for EVs and was issued by MoRTH, thus leading to a reduction in the initial costs of EVs.
- Ministry of Housing & Urban Affairs (MoHUA) amended Model Building Bylaws 2016 to build charging stations and infrastructure in private and commercial buildings.
- A dedicated e-portal was launched under the name e-AMRIT that gives all information related to electric vehicles.