Policy Formulation on Electric Vehicles

In News

The Indian government is formulating a policy to institutionalize research and development on the next generation of battery technologies for Electric Vehicles (EVs).

Significance of the Policy

• It will reduce India’s dependence on other countries for its import.
  • China is currently the leader in supplying lithium-ion batteries to the world, and India’s EV industry is heavily dependent on import of the batteries.
  • China also has stakes in strategic reserves of lithium mines in other countries.
  • The move to boost research and development (R&D) on battery technology is significant in this context.
• The policy is needed to find an integrated approach for the development of next-generation technology with proper coordination among all the key players.
• It will also give a boost to the research in the field of alternatives technologies like metal-ion, metal-air, hydrogen fuel cell, etc which has the potential to replace lithium-ion batteries.
• Mass production led by policy guidance could reduce the prices of the batteries.
• Concerns: India has very low strategic reserves on lithium; hence it is important to look for alternative technologies.
  • Lithium supply is going to be dependent on one or two countries in the future which can potentially lead to some strategic issues.
• Suggestions: India should concentrate on lithium-ion alternative batteries and mining sector companies should explore opportunities abroad for acquiring assets.

Indian Policies on EVs

• In 2010, the Ministry of New and Renewable Energy (MNRE), announced a financial incentive for manufacturers for EVs sold in India.
  • The Rs 95-crore scheme envisaged incentives of up to 20 percent on ex-factory prices of vehicles, subject to a maximum limit.
  • It was the first concrete decision to incentivize EVs. However, it was withdrawn by the MNRE in March 2012.
• 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 the 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 percent electric cars by 2030.
  • However, the automobile industry raised concerns over the execution of such a plan, so the government subsequently diluted the plan to 30 percent.
• In February 2019, the Union Cabinet cleared an Rs. 10,000-crore programme under the FAME-II scheme.
  • Objective
    • To encourage faster adoption of electric and hybrid vehicles by offering upfront incentives on the purchase of EVs.
    • Also by establishing the necessary charging infrastructure for EVs.

Source: IE

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Electric Vehicles

• An EV is a vehicle that operates on an electric motor, instead of an internal-combustion engine that generates power by burning a mix of fuel and gases.
• Benefits
  • Seen as a possible replacement for current-generation automobiles, in order to address the issues of rising pollution, global warming, depleting natural resources, etc.
  • Even though the concept of EVs has been around for a long time, it gained momentum amid the concern of rising carbon footprint and other environmental impacts of fuel-based vehicles.

Indian Policies on EVs

• In 2010, the Ministry of New and Renewable Energy (MNRE), announced a financial incentive for manufacturers for EVs sold in India.
  • The Rs 95-crore scheme envisaged incentives of up to 20 percent on ex-factory prices of vehicles, subject to a maximum limit.
  • It was the first concrete decision to incentivize EVs. However, it was withdrawn by the MNRE in March 2012.
• 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 the 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 percent electric cars by 2030.
  • However, the automobile industry raised concerns over the execution of such a plan, so the government subsequently diluted the plan to 30 percent.
• In February 2019, the Union Cabinet cleared an Rs. 10,000-crore programme under the FAME-II scheme.
  • Objective
    • To encourage faster adoption of electric and hybrid vehicles by offering upfront incentives on the purchase of EVs.
    • Also by establishing the necessary charging infrastructure for EVs.

Source: IE

“>

In News

The Indian government is formulating a policy to institutionalize research and development on the next generation of battery technologies for Electric Vehicles (EVs).

Significance of the Policy

• It will reduce India’s dependence on other countries for its import.
  • China is currently the leader in supplying lithium-ion batteries to the world, and India’s EV industry is heavily dependent on import of the batteries.
  • China also has stakes in strategic reserves of lithium mines in other countries.
  • The move to boost research and development (R&D) on battery technology is significant in this context.
• The policy is needed to find an integrated approach for the development of next-generation technology with proper coordination among all the key players.
• It will also give a boost to the research in the field of alternatives technologies like metal-ion, metal-air, hydrogen fuel cell, etc which has the potential to replace lithium-ion batteries.
• Mass production led by policy guidance could reduce the prices of the batteries.
• Concerns: India has very low strategic reserves on lithium; hence it is important to look for alternative technologies.
  • Lithium supply is going to be dependent on one or two countries in the future which can potentially lead to some strategic issues.
• Suggestions: India should concentrate on lithium-ion alternative batteries and mining sector companies should explore opportunities abroad for acquiring assets.

Indian Policies on EVs

• In 2010, the Ministry of New and Renewable Energy (MNRE), announced a financial incentive for manufacturers for EVs sold in India.
  • The Rs 95-crore scheme envisaged incentives of up to 20 percent on ex-factory prices of vehicles, subject to a maximum limit.
  • It was the first concrete decision to incentivize EVs. However, it was withdrawn by the MNRE in March 2012.
• 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 the 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 percent electric cars by 2030.
  • However, the automobile industry raised concerns over the execution of such a plan, so the government subsequently diluted the plan to 30 percent.
• In February 2019, the Union Cabinet cleared an Rs. 10,000-crore programme under the FAME-II scheme.
  • Objective
    • To encourage faster adoption of electric and hybrid vehicles by offering upfront incentives on the purchase of EVs.
    • Also by establishing the necessary charging infrastructure for EVs.

Source: IE