National EV Policy
Context :
Ø House panel suggests national policy on EVs …………… LiveMint / 24 March 2023
Extract :
The parliamentary committee on estimates has recommended the government for formulation of a comprehensive national policy on electric vehicles (EV).
In its report on the ‘Evaluation of Electric Vehicle Policy’, the panel chaired by member of parliament Girish Bhalchandra Bapat noted that Centre had launched the National Electric Mobility Mission Plan (NEMMP) 2020 in 2013 and experiences and feedback on the plan should also be used in formulating a new policy.
“It was believed that with the commitment and support of all stakeholders, 6-7 million units of new vehicle sales of EVs, could be achieved by 2020.
The committee note with regret that the target 6-7 million units of EVs was not achieved as only around 1.4 million electric vehicles were being used on the roads of India as on 3rd August, 2022. It has been a decade since MHI had launched the NEMMP 2020," the report said.
It said that the although transport is a state subject and some states have formulated their own EV policies, a “strong National Policy framework on EVs" needs to be formulated.
“The committee, therefore, urge the government to frame a comprehensive National Policy on EV by incorporating the elements of successful state models and international best practices," the committee said in its report.
The policy should also focus on charging infrastructure, battery swapping, battery waste recycling, public awareness in addition to the demand and supply side incentives such as,
# lower GST,
# waiving road tax,
# registration fee,
# hire-purchase scheme at discounted interest rates by financial institutions for buying EVs among others.
The panel also suggested ,
# the continuation of the FAME II scheme beyond March 2024 and also said that
# four wheelers should be included under the scheme to boost demand.
“The committee recommends that the government should consider remodelling the subsidy on electric four wheelers similar to that of electric two wheelers i.e. demand incentive may be increased to at ₹15000 per KWh from at ₹10000 per KWh and the cap on incentives for Electric 4 Wheelers may be increased to 40% of the cost of vehicles from 20% cost of vehicles."
The government may also consider incentivizing a range of the vehicle in addition to the subsidy being given on per unit power of the battery.
Noting that several states have waived off or reduced the road tax on EVs and these states are not getting any compensation for the loss of revenue, Centre said that the committee said that Centre should compensate states for the waiver and reduction.
“The committee believe that this will encourage all the states to provide such waiver on road tax on EVs, which will result in faster adoption of EVs all over the country."
MY TAKE :
Ø FAME II > FAME III > FAME IV …………………… 05 March 2019
Extract :
( FAME = Faster Adoption and Manufacturing of Hybrid and Electric Vehicles )
National E Mobility Mission Plan [ NEMP – 2012 ]
7 million E Vehicles on the roads by 2020
enter FAME
2015 Target > By 2030, all vehicles on Indian roads should be Electric ( - some 300 million ? )
2016 Target > By 2030 , 25 % of the vehicles on Indian roads should be electric ( - 75 million ? )
FAME II ( Ap 19 – Mar 22 ) - 3 Years
Highlights of FAME II :
# Scheme starts on …………………………….. 01
# Total value of Subsidy Package …………. Rs 10,000 Crore
# Charging Stations ( Rs 1,300 Cr )………….2,700
Current Targets / Subsidy Amounts :
Type of E Vehicle / Battery Capacity (KWh) | Target Number ( 3 YR ) | Subsidy Amount / Maximum Veh Price (Rs ) | End Use prescribed |
Buses | 7,090 | 35-60 lakh / 2 crore | Public Transport |
Cars ( Hybrid ) / 15 - 25 | 20,000 | 5000-20,000 / 15 lakh | Taxi / Aggregator |
Cars ( Electric ) / 15 - 25 | 35,000 | 1.5 - 2.5 lakh / 15 lakh | Taxi / Aggregator |
3 Wheelers / 5 - 10 | 500,000 | 50,000-1 lakh / 5 lakh | Commercial |
2 Wheeler / 2 – 4 | 1,000,000 | 20K-40K / 1.5 lakh | Private use |
==============================
Are these targets achievable ?
Following figures speak for themselves :
Type of E - Vehicle | Target for 3 years | Therefore Per Year | Actual EV sold in 17-18 |
Buses | 7,090 | Approx. 2,300 | Less than 200 ? |
Cars ( Hybrid ) | 20,000 | Approx. 7,000 | NIL |
Cars ( Electric ) | 35,000 | 20,000 | 1,200 |
3 Wheelers | 500,000 | 175,000 | 132,000 ( low cap Ricks ) |
2 Wheelers | 1,000,000 | 333,000 | 58,400 |
==============================
How much of above targets are likely to be achieved ?
Type of Veh | 17-18(Actual) | 18-19(Est) | 19-20(Est) | 20-21(Est) | 3yr total(E) | 3yr Target | %age likely |
Buses | 200 | 500 | 750 | 1000 | 2,250 | 7090 | 32 |
Cars ( Hy ) | Nil | 500 | 1,000 | 2,000 | 3,500 | 20,000 | 17.5 |
Cars ( E ) | 1,200 | 3,000 | 5,000 | 7,000 | 15,000 | 35,000 | 43 |
3 Wheelers ( excluding E - Ricks with less than 5 KWh battery ) | 132,000 ( all sold were under 5 kwh battery, which do not qualify for subsidy ) | 10,000 ( with battery bigger than 5 KWh ) | 15,000 | 25,000 | 50,000 | 500,000 | 10 |
2 Wheeler | 58,400 | 75,000 | 100,000 | 125,000 | 300,000 | 1,000,000 | 30 |
Ref :
https://www2.deloitte.com/
China has 250 million Electric 2 wheelers with annual sales of 30 million
==============================
What is the reason for this pessimism ?
# Non-availability of “ Fast “ battery charging stations every few km, resulting in “ range anxiety “ for EV buyers
# Maintenance / Service / Repair garages for Electric vehicles, on each corner ( new technology poses problems )
# Despite the subsidies, ex-factory prices will still remain much higher than for equivalent Petrol / Diesel vehicles
# Ramping up production is a very complex and time-consuming process. Not like turning on a tap !
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
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
EV juice from Alu-Air Battery ? [
Ashok Leyland is not waiting !
Holy Grail for Electric Vehicles
# Sodium-ion Batteries
Congratulations , Shri GopuKumarji
# Fuel Cell ( based on hydrolysis ) developed by CECRI ( literally FREE electricity and zero pollution )
Ray , a drop of golden Sun
# 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
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