Emails (Others): DEAR SHRI GADKARIJI : THIS IS YOUR CHANCE TO MAKE INDIA , WORLD LEADER IN ELECTRIC VEHICLES

Thursday 23 November 2023

DEAR SHRI GADKARIJI : THIS IS YOUR CHANCE TO MAKE INDIA , WORLD LEADER IN ELECTRIC VEHICLES

Light - Camera - Action

The PLI Scheme for Auto Industry is expected to be announced tomorrow .

Would it incorporate any of my suggestions in this respect, made more than 2 YEARS ago, vide my following e-mail ? :

FAME II > FAME III > FAME IV ……………………………….( 05 March 2019 ) , where I raised following issues:

What , if any , is the shortcoming of just announced FAME II ?

# It focuses solely on “ Incentivizing the Buyers “ through subsidies

# There are no “ Incentives “ for the vehicle manufacturers to ramp up production or commercialize “ cost

reducing “ technologies, especially in the matter of Lithium-ion batteries which constitute up to 40 % of EV

ex- factory price

# There are no “ dis-incentives “ for manufacture / sale / purchase of Petrol – Diesel vehicles

# Linking the subsidy amounts with battery size is not the right method. In fact a vehicle with a smaller size

battery , but giving same performance ( speed – range – charging time etc ) as a vehicle with a bigger

battery, should be rewarded with higher subsidy !

# Efficient use of input resources must be encouraged

# There is no directive with regard to scrapping of old ( more than 10 years ) petrol / diesel vehicles

Then I got following glimpse from this news-report today :

Cabinet gearing for a PLI scheme for auto sector / TheOutreach / 13 Sept 2021

That curiosity made me construct following comparative tabulation :

LIGHT “ Summary of Suggestions “ in : FAME II > FAME III > FAME IV	CAMERA As reported in OutReach Cabinet gearing for a PLI scheme for auto sector	ACTION Watch this space !

[ A ]….. MANUFACTURERS
( A.1 ) Policy Instrument > Corporate Income Tax for Incentivizing the manufacturers of Batteries
( A.2 ) Abolish Corporate Income Tax ( for 10 years ) for the entire E Mobility Eco-System	The Union Cabinet is likely to offer a PLI scheme for the auto sector this week, with a focus on promoting manufacture and export of electric vehicles (EVs) and cars running on hydrogen-fuel cells, as well as sophisticated auto parts requiring advanced production technologies. The indicative list of items that may qualify for the PLI scheme include battery/electric vehicles and hydrogen fuel cell vehicles. The scheme may also incentivise EV parts like high-voltage connectors and cables, AC and DC charging inlet and outlet ports, hydrogen fuel cell and its components and flex-fuel kits. The scheme will also try to promote the manufacture of sophisticated auto parts requiring advanced technologies such as electronic power steering system, radars, sensors, torque converters, and systems for driver monitoring, advanced emergency braking, blind spot detection and tyre pressure monitoring.
( A.3 ) Incentivizing the E Vehicle manufacturers
Policy Instrument > Carbon Credits Based on car specifications / assumed average monthly usage etc , figure out and fix " Carbon Credits " for each model of electric car manufactured Based on Carbon Credits earned , calculate Direct Transfer of Benefit ( DTB ) to electric car manufacturers based on monthly dispatches of each model Then transfer these amounts from EVFF ( Electric Vehicle Finance Fund ) , as incentives to manufacturers	The government plans to offer incentives on the basis of incremental sales value calculated from the base year (likely to be 2019-20, as it was a non-Covid year). Additional incentives could be offered to manufacturers of auto components for electric and hydrogen fuel cell vehicles.
( A.4 ) Dis-incentivize manufacturers for production of Petrol / Diesel vehicles This could be achieved by gradually raising the GST rate for such vehicles, starting from April 2022 and simultaneously gradual reduction in the GST rate for Electric vehicles

( A.5 ) Incentivizing manufacturers to get into the“ Recycling of Old Vehicles “
[ B ] BUYERS
( B.1 ) Incentivize for purchase of E Vehicles – especially, leasing of buses
( B.2 ) Incentivize Retro-fitting of old Petrol / Diesel vehicles ( non-compliant with BS VI norms ) Give subsidies to “Current Owners of Old Vehicles “ at 150 % of subsidies announced under FAME II
( B.3 ) Incentivize to switch-over to E Bikes ( for details, read the blog )
( B.4 ) Policy Instrument > Taxing all Vehicles based on their “ Harm Quotient “ for environment Dis-incentivize purchase of Petrol / Diesel vehicles ( for details , read : Transport : an Integrated Logistic Plan ? [ 20 Nov 2018 ]
[ C ] GOVERNMENT
( C.1 ) P0licy Instrument > Wet Leasing
[ D ] PASSENGERS OF PUBLIC TRANSPORT ( Non-Vehicle Owners ) For taxis / rickshaws running on Hybrid fuel ( producing less Co2 ) or Electric Vehicles ( zero emission ) , both , the driver and the the passenger will get " Carbon Credits " , which will also get displayed on the DigiMet as also on the FareCalc Mobile App on the smart phone of the passenger ( @ 20 % of the fare payable ? ) These amounts will get transferred to their respective Jan Dhan Bank Accounts ( thru DTB ) , every quarter

[ E ] SOLAR POWER for ELECTRIC VEHICLES
Policy Instrument > Amendment to Electricity Act Anyone can generate and SELL electricity , anytime and to anyone and at any price !