RE: DEAR SHRI GADKARIJI : IT IS TIME TO THINK RATIONALLY / NOT EMOTIONALLY

 Dear Rohan,

 

 

You have made a very valid point when you say “  …. Reducing the tariff on EVs should be a long term and sustainable policy, not a gimmicky short term play”

 

 

You also observed , “ ,,,,, .  Important to note that even the 40% tariff would be the highest paid in the entire globe by quite a lot “

 

 

Today, I plan to compile data on import duties payable in different countries for importing fully assembled electric cars. I need such comparative figures to be able to persuade our Policy Makers

 

But, lack of such data did not stop me from sending following E-Mail to Indian Cabinet Minsters / NITI Aayog etc :

 

FAME II > FAME III > FAME IV  ………………………(  05 March 2019 )

 

From amongst many suggestions that I made in this mail, I reproduce below only those that are intended to encourage / incentivize the EV Manufacturers

 

With regards,

 

Hemen  

 

 

 

What would you recommend next ?

 

FAME  III  (  Apr  22  -  Mar 26  ) – 4 years

 

 

 

 

[ A ]….. MANUFACTURERS

 

 

           ( A.1 ) Policy Instrument >  Corporate Income Tax  for  Incentivizing the manufacturers of Batteries

 

 

 

               Total exemption of Corporate Income Tax for companies exclusively engaged in the manufacture of :

 

 

                #  Aluminium-Air Batteries  (  No need for any roadside battery charging stations  ! )

 

 

                          EV juice from Alu-Air Battery ?                            [  16  Jan 2018  ]

                          Ashok Leyland is not waiting !                             [  17  Jan 2018  ]

                          Holy Grail for Electric Vehicles                             [  17 Feb 2018  ]

 

            #  Sodium-ion  Batteries   (  Reduce battery cost to 10 % of Lithium-ion Battery cost ! )

                          Congratulations , Shri GopuKumarji                       [  30  Jan  2019  ]

 

               #   Fuel Cell ( based on hydrolysis ) developed by  CECRI  (  literally FREE electricity and zero pollution )

                          Ray , a drop of golden Sun                                    [  18  Feb  2019  ]

 

               #   Other developments in fast-charging batteries ( under 5 minutes for 80 % charge )

 

                          A New Battery Could Store Ten Times the Power as Lithium-Ion  

                          Piëch's electric coupe charges to 80 percent in five minutes

 

 

 

         ( A.2 )  Abolish Corporate Income Tax ( for 10 years ),  for the entire E Mobility Eco-System

 

 

                          From OLD to NEW ? No , go NEWER !                     [  22  Sept  2016  ]

                          For EV , Andhra gets an A                                      [ 25  Dec  2017  ]

                          NITI proposes : SIAM postpones                            [  20  Dec  2017  ]

                          India : Energy Storage Mission                               [  04  Dec  2017  ]

 

 

         ( A.3 )  Incentivizing the E Vehicle manufacturers

 

                        #  E Cars having Solar Rooftop powering a small Li-ion Battery

 

         Way back in March 2017 , ISRO demonstrated a OMNI retro-fitted with a Solar Panel roof-top ,

                            charging a high density Lithium-ion Battery – eliminating need for roadside charging stations !

                            Most likely, such a car would cost under Rs 10 lakh

 

                            As against this , German company SONO MOTORS just released its own final design for a similar

                            car with solar roof top and a 35 KWh battery , selling for Euro 25,500 ( Rs 20.5 Lakh )

 

                            Government must go all out to persuade Indian Car Manufacturers to adopt ISRO technology

                            Not only, will we save lakhs of crore of Rupees in Battery Charging Infrastructure but we would be

                            able to export millions of such E Cars all over the world

 

                                   #Solarcar #Electriccar                                              [  07  Nov   2017   ]

 

                                   Holy Grail for Electric Vehicles                                    [  17  Feb  2018  ]

 

                                  #ISRO #MSME #ElectricVehicle                                   [  13  Nov  2017  ]

 

                                  EESL : Getting Away from Straitjacket ?                      [  26   Aug   2018   ]

 

                                  Solar Panels charging Li-ion Batteries of Electric Cars ?   [   04  May   2017  ]       

 

                

      

#  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

 

                     and then transfer these amounts from EVFF ( Electric Vehicle Finance Fund ) , as incentives to

  

                     manufacturers 

         

                                 PIYUSH PLAN ?                                               [  27  Mar  2016  ]

                                 Gathering Speed at Snail’s Pace ?                      [  02  Oct  2018  ]

 

 

   

( 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 “

 

                   By ordering to stop usage of old vehicles in Delhi, already a serious problem has arisen in respect of their storage and disposal . When applied on all-India

                   basis, this could lead to millions of old vehicles getting “ abandoned “ and cluttering the city-scape

 

         

                  But , this seeming nightmare could be turned into a profitable business opportunity , by adoption of :

 

                                 Car Grave-Yard of World ?                           [  14  Feb  2018   ]

 

 

PS :

 

I just came across the following news :

 

https://www.zeta2030.org/news/zeta-executive-director-joins-secretary-granholm-senator-stabenow-and-representative-tonko-for-press-conference-to-announce-new-investments-in-transportation-electrification?utm_medium=email&_hsmi=144515914&_hsenc=p2ANqtz--TZDZ0xyLvZEU8ja_2QhbQFKyPTZnmxhu7tsUEnfpWXhBoyAv6sB6e7gcAZVW1SbrjSgQvs1pAC-kEPMDBCeup1Hr2Bw&utm_content=144515914&utm_source=hs_email

 

 

 

From: Rohan Patel [mailto:rohpatel@tesla.com]

Sent: 28 July 2021 17:28

To: Hemen Parekh

 

Subject: Re: DEAR SHRI GADKARIJI : IT IS TIME TO THINK RATIONALLY / NOT EMOTIONALLY

 

 

-------------------------------------------

 

Thanks Hemen.  Unfortunately I’m not sure these ideas are workable.  Important to note that even the 40% tariff would be the highest paid in the entire globe by quite a lot.  

 

Reducing the tariff on EVs should be a long term and sustainable policy, not a gimmicky short term play.   If Indian built vehicles still can’t compete after a 40% tariff, there is a fundamental problem with Indian manufacturing.  And I’m sure that’s not the case.  Locally built will always make more sense, and protectionist measures will only protect the country from the growth industries and jobs of the future.   

 

---

From: Hemen Parekh <hcp@recruitguru.com>
Sent: Wednesday, July 28, 2021 7:02 AM
To: Rohan Patel
Subject: FW: DEAR SHRI GADKARIJI : IT IS TIME TO THINK RATIONALLY / NOT EMOTIONALLY

 

Rohan,

 

Thought you might like this

 

Regards,

 

hemen

 

From: Hemen Parekh [mailto:hcp@recruitguru.com]
Sent: 28 July 2021 12:43
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Subject: DEAR SHRI GADKARIJI : IT IS TIME TO THINK RATIONALLY / NOT EMOTIONALLY

 

Dear Shri Gadkariji,

 
It is high time my 4 YEAR old suggestion ( for a STANDARD / MODEL , phased manufacturing program – PMP – for Foreign Companies wanting to make / sell EVs , to be framed and uploaded on Govt website ), is acted upon to put an end to the controversy which has been unleashed by Tesla’s request for import duty reduction

And, if our local EV manufacturers have fears of Tesla dumping its Model 3 ( due to lowering of import duty from 60 % to 40 % as requested by Tesla ), just ask them :

“ If Tesla Model 3 ( CIF of $ 39,990 = Approx Rs 30 Lakh ) pays 40 % duty ( Rs 12 lakh ) , taking the total to Rs 42 lakh ( before GST / Dealer margin ), how many will it succeed in selling in ONE YEAR ?

 Should you not be worried that , even with 60 % duty, Chinese companies ( BYD – SAIC  etc ), may sell into India , their fully assembled electric cars for Rs 10 lakh or less ?

As done in case of Solar Panels / Modules imported from China , do you want me to impose a SGD of 14.5 % on imported Electric Cars ( on top of existing 60 % ) , in order to protect you ?

Solar panels ( which are far more important to our Renewable Energy program ) are slated for a BASIC import duty of only 25 % from next year. Why should Electric cars be treated differently ?

READ :

Import Duties : Time to get Rational

https://lnkd.in/e3F4GG9
-------------------------------------------------------------------

 

Import  Duties : Time to get Rational

 

 

 

Not emotional

 

Context :

Sparks begin to fly over demand for EV duty cuts  /  Eco Times / 28 July 2021

 

Extract :

Auto Inc seemingly divided over the way ahead

SIAM, TaMo and OLA chief have opposed any policy relief to imported EVs

Split wide open : No special duty rates for imported EVs in India

Tesla seeks 40 % import duty on imported electric cars

60 % -100 % present duty rate depending on the value of the car

Auto Industry lobby, Tata Motors, Ola against special concessions

Hyundai supports a lower duty for EVs

 

 

Ola’s Aggarwal strongly disagrees with Musk’s call   /  Business Line  /  28 July 2021

 

Extract :

“ Let us have confidence in our ability to build indigenously and also attract global OEMs to build in India, not just import. We won’t be the first country to do so “, tweeted Aggarwal on Tuesday

Echoing the sentiments of Aggarwal, Suhas Rajkumar, Founder-CEO of Simple Energy, a Bengaluru-based electric two wheeler manufacturer, said that “ Build in India “ is the way forward for the EV industry

 

Local Solar Cos jittery as curbs on Chinese Modules end this week  /  Eco Times / 28 July 2021

 

Extract :

Domestic solar manufacturers are jittery as the import duty protections to prevent dumping of Chinese modules are expiring by the end of the week, with no replacements in sight yet.

The current safeguard duty (SGD) of 14.5% on imports is set to expire on July 30. Due to World Trade Organisation (WTO) rules, an SGD cannot be applied for more than four years; India is currently in its third year. Even if the SGD is extended for the fourth and final year, WTO rules also dictate PROGRESSIVE LOWER RATE of duties, which would result in an SGD of approx. 14 % for the coming months

Meanwhile, the government only plans to levy ( from April 2022 ), a BASIC CUSTOMS DUTY of ,

       #  25 %  on Solar Cells, and

       #  40 %  on Modules

 

This provides for an EIGHT MONTH “  Duty Holiday “ , that Indian Power Developers are hoping to exploit by stockpiling Solar Modules for future projects

               Import Duty Incidence on fully assembled Solar Panels Vs fully assembled Electric Cars

 

PERIOD	FULLY IMPORTED SOLAR PANELS	FULLY IMPORTED ELECTRIC CARS
( A ) Protection Period