The EV policies put in place by some States as part of FAME-II have been instrumental in driving this growth.
EVs operate on an electric motor, instead of an internal-combustion engine that generates power by burning a mix of fuel and gases.
Indian Policies on EVs:
- In 2013, India unveiled the National Electric Mobility Mission Plan (NEMMP) 2020: It aimed to make a major shift to EVs and to address the issues of national energy security, vehicular pollution and growth of domestic manufacturing capabilities.
- It offered subsidies and created a supporting infrastructure for e-vehicles but the plan has not been implemented.
- In the Union Budget 2015-16, the ‘Faster Adoption and Manufacturing of EVs’ (FAME) scheme was announced, with an initial outlay of Rs. 75 crore.
- It aimed to offer incentives for clean-fuel technology cars to boost their sales to up to 7 million vehicles by 2020.
- In 2017, the Transport Ministry highlighted its intent to move to 100 per cent electric cars by 2030.
- In February 2019, the Union Cabinet cleared an Rs. 10,000-crore programme under the FAME-II scheme for promotion of Electric Mobility in the country.
- Initially envisioned for three years, FAME-II got a two-year extension in June 2021 owing to a number of factors including the pandemic.
- In the 2022 budget, a battery swapping policy was announced as an easier way to charge EVs. The battery swapping model for supplying power has side-stepped the lack of charging infrastructure but the future is likely to see a mix of both models.
- The government also announced a Production Linked Incentive scheme for automakers, a part of which aims to boost electric vehicles manufacturing.
Challenges:
- India’s road to a fully-electric ecosystem still has a few hurdles – High cost, inadequate infrastructure, lack of high performing EVs .
- Local manufacturing enterprises lack the necessary resources or the motivation to invest in design developments.
- The absence of a robust manufacturing ecosystem for the materials associated with the EV revolution, coupled with the concentration of the supply chain in certain regions.
- Li-ion batteries are complex devices requiring a level of sophistication that can take years to perfect.
Way forward:
The current policies in place at the State level have spurred an e-three-wheeler dominance but it has come at some costs therefore subsequent EV policies must pay special attention to adequate passenger safety.
Future policies must therefore incorporate appropriate design and passenger safety standards.
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