Clean Tech

Electric mobility requires incentives charge

V Rishi Kumar | Updated on: Jan 01, 2020

The country’s electric mobility mission is moving gingerly. Big plans have been laid out but it is time to implement the plans by incentivising early adoption.

The near-term plan for 2020 focuses on creating an environment to develop manufacturing in the country. The long-term plan is to bring down greenhouse gas (GHG) emission intensity by 33-35 per cent below 2005 levels, by 2030, with electric mobility as a key enabler. The National Electric Mobility Mission Plan 2020 has been designed to enhance national fuel security and provide affordable, environment-friendly transportation.

The Department of Heavy Industry charted out a scheme — Faster Adoption and Manufacturing of (Hybrid &) Electric vehicles in India (FAME India) — in 2015 to pave the way for manufacture of electric and hybrid vehicles and ensure sustainable growth. Phase I of FAME launched in April 2015 was extended up to March 2019 with focus on the creation of demand and a technology platform, taking up pilot projects and creating charging infrastructure. It aimed at incentivising 2-3-4-wheelers, light commercial vehicles and buses. This was followed by the NEMMP 2020, which set out with a target to achieve sales of 6-7 million hybrid and electric vehicles by 2020.

During March 2019, the Department of Heavy Industry notified the Phase II FAME scheme with an outlay of ₹10,000 crore for a three-year period. As a part of the scheme, the Government brought electric vehicles under 12 per cent GST without cess as against 28 per cent GST rate with cess up to 22 per cent for commercial vehicles. It also envisages deployment of over 5,000 electric buses by State Transport undertakings.

NITI Aayog, in its Zero Emission vehicles (ZEVs): Towards a Policy Framework, says India has a lot to gain by converting internal combustion engine (ICE)-powered vehicles to EVs at the earliest, which will help reduce the oil import bill.

Experts expect some sort of parity beteween ICE and EV by 2023. If the government comes up with some incentives, including a scrappage policy for old vehicles when they take up EVs, it could spur a new growth phase for electric mobility.

Published on January 01, 2020
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