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Electric Vehicle PDF
Electric Vehicle PDF
Team Members
GENERAL POLICY FRAMEWORK
SUGGESTIONS
India needs to import oil to cover over 80 percent of transport fuel. The import bill of crude oil
is estimated to increase by 42 per cent from $88 billion in 2017-18 to $125 billion in 2018-19.
Further advances in RE technologies have drastically reduced cost and introduced clean,
low-carbon and inexpensive grids. India to add 175 GW of RE capacity by 2020
While vehicle growth in India is rapid, ownership per 1000 population has increased from 53 in
2001 to 167 in 2015, a key difference between India and other countries and the types of vehicles
being used
As a result, developed economies such as EU, the USA and Japan as well as developing
economies such as China and India have all included EVs in their policies to lower their carbon
emissions while providing convenient and cost-effective mobility.
The FAME scheme was launched under NEMMP 2020 in the Union Budget for 2015-16
1 with an initial outlay of INR 75 crore
2 It encourages buyers to purchase electric vehicles over the traditional fuel based cars
The Government shall reimburse the automakers the discount that the auto makers will
3 pass on to the customers
It involves the provision of INR 795 crore (extended to 895 crore) support till the year
4 2020 for the manufacture as well as sale of electric and hybrid vehicles
It also seeks for development of technology, demand creation, pilot projects and
6 enhancement of charging infrastructure
8 The nodal department for this scheme is the Department of Heavy Industries
2 Around 42000 electric vehicles sold in 2012-2013, 20000 in 13-14 and 22000 in 14-15
3 During 2012-2013, major percentage of electric vehicles were electric low speed scooters
4 This scheme envisages boosting momentum for hybrid and electric vehicles under all
vehicular segments including 2W, 3W, 4W, LCV and Buses
5 There was a phase wise implementation of the scheme with fund allocation of INR 260
crore and 535 crore for the first 2 years
2 Priority support for public transportation, shared mobility, and smaller electric vehicles
like two-wheelers. In FAME-II, incentives to private purchases will get slightly curtailed
or totally pruned
3 As per a report from NITI Aayog, EVs can cut India’s energy demand by 64 per cent and
carbon emissions by 37 per cent by 2030.
4 The auto industry is riddled with apprehensions and doubts over the long-term roadmap
that the government is yet to prepare
5 The industry fears that lack of charging infrastructure and a robust ecosystem are the
biggest stumbling blocks to ensuring EVs techno-commercial feasibility.
6 The anxiety has grown since February 15, after transport minister dismissed the need
for a policy on EV (and any fiscal incentives to manufacturers) and instead supported an
‘action plan’ to encourage the manufacture and use of EVs.
7 low average vehicle (petrol/diesel) prices will inhibit EV uptake for the next 10 years
8 After 2030, EV sales in India to accelerate with increased affordability, as well as the
government’s efforts to ensure universal access to electricity to lower challenges with
charging infrastructure.
5 Lead-acid batteries are done away with, we have moved to advanced batteries.
6 Focus on electrification of buses based - unmet demand of many states under FAME-I
7 Reducing customs duty on parts of electric vehicles which are currently not exempted
from import tariff
8 With an aim to boost production of electric vehicles (EVs) in the country, the ministry
has also suggested defining semi knocked down and completely knocked down kits
used for assembling EVs for streamlining of customs duty.
9 At present, key components for EVs, including battery, controller, charger, converter,
energy monitor, electric compressor and motor, attract zero customs duty. On the other
hand, parts including metals and plastics attract 28 percent basic customs duty.
10 The tax structure entailing a one-year sunset clause was proposed by the Heavy
Industries Ministry
Phase-II of FAME
11 The policy to boost EV adoption in the country will also entail a long-term road-map and
vision to encourage domestic manufacturing of lithium-ion batteries.
12 No support for battery swapping wing to fears of dumping of batteries from China and
the high cost of establishing battery swapping infrastructure. no proper mechanism for
their disposal.
13 Emphasized incentives for domestic manufacturing of lithium-ion batteries as they are
mostly imported from China
14 The duty on import of Li-ion battery is only going to increase so we are not going to
encourage their imports
15 Reduction in the SKD and CKD rates for electric vehicles
17 Energy Efficiency Services (EESL), responsible for procuring EVs for the government,
has already tendered for 10,000 EVs from Tata Tigor and Mahindra e-Verito, to kickstart
the replacement of the existing fleet of petrol and diesel vehicles. There are over 5 lakh
such vehicles which EESL intends to replace over the next three to four years, which will
lead to fuel savings of about 8,000 million litres and 10 million tons of carbon reduction.
WHERE WE STAND
SUGGESTIONS
1 Additional government incentives including lower GST rate
2 Sizable income tax benefits
3 waiver on road tax and toll charges
4 Free parking for EV, High parking changes for petrol and diesel cars
5 50 per cent reduction in power tariff for charging electric vehicles
6 Electric home charging schemes
7 Currently states like Goa and Maharashtra are offering registration fee waiver for BEV.
8 Incentive for swapping diesel vehicles with electric vehicles