#TIL: Key Central Government EV Policies in India
By Shilpi Samantray
Over the past few years, the Indian government has steadily increased its focus on electric mobility through appropriate policies be it in skilling, or in developing technology and infrastructure thereby encouraging for faster adoption of EVs. While the big picture and intentions are clear, let us look at the evolution of this goal and how it has gradually adapted to the changing circumstances.
First Automotive Mission Plan (2006–16): The first AMP plan was launched in 2006 for the next ten years with a vision to make India, a global destination for design and manufacturing of automobiles and auto components. During this period, significant investments were received from global and local OEMs as well as component manufacturers exceeding the target of INR 1,57,500 Crore. Under this plan, an incremental employment creation of 25 million jobs was achieved.
Ministry of New and Renewable Energy (MNRE) Scheme (2010): In Nov 2010, MNRE introduced INR 95 Crore subsidy scheme to provide incentives to EV buyers. The scheme provided subsidies of up to 20% on the ex-factory price of EVs. Even though the scheme helped in boosting EV sales, it did little to provide a support infrastructure and create awareness that is needed to build a sustainable EV market.
NEMMP 2020 (2012): The MNRE scheme was replaced by the National Electric Mobility Plan 2020 with a target to deploy 5 to 7 million electric vehicles in the country by 2020. Under this plan, the focus was on permissive legislation to allow usage of EVs in various areas and set operational standards on safety , emission , vehicle performance, charging infrastructure etc. However, the plan had limited on-ground implementation up until 2015.
FAME I Policy (2015): Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME) was launched to fast track the goals of NEMMP 2020 plan. The scheme had four focus areas: Technology Development, Demand Creation, Pilot projects and Charging Infrastructure. The scheme aimed at market creation through demand incentives for all vehicle segments ranging from 2-wheelers, 3-wheelers, 4-wheelers to light commercial vehicles. It was initially launched for two years, commencing from 1st April 2015 and was subsequently extended from time to time until 31st March 2019.
Second Automotive Mission Plan (2016–26): The vision of the second AMP plan is to make India’s automotive industry among the top three in the world by 2026 in areas of engineering, manufacturing and export of vehicles and auto components. Under the plan , the government wants to provide adequate incentives for speedy development of indigenous component design and manufacturing base for the electric and hybrid vehicle industry to take off in India. In order to achieve that the plan supports the planned establishment of sufficient charging stations for EVs. Its aim is to promote safe, efficient , affordable, sustainable and comfortable mobility for everyone through both private and public modes of transportation.
NITI Aayog Roadmap (2017): NITI Aayog’s report on Transformative Mobility solutions for all provides a 15-year roadmap for electrification of vehicles. The roadmap focuses on shared, electric and connected mobility future — based on which India can save around $60 billion in energy costs by 2030 and one gigatonne of carbon emissions between 2017 and 2030.
National Auto Policy (2018): The National Auto Policy 2018 suggests adopting a long-term roadmap to decide emission standards after BS-VI and harmonize emission standards with global benchmarks by 2028. It also recommends Corporate Average Fuel Economy (CAFE) standards by 2025 with an aim to increase the share of green technologies that have zero or very low emissions like electric and hybrid vehicles, bio-fuel and methanol based vehicles, CNG and Hydrogen/fuel-cell based vehicles. The National Auto Policy aims to strengthen the FAME scheme by increasing consumer awareness about the early bird incentives of adopting to EVs and advantages of green mobility.
FAME II Policy (2019): FAME II was launched last year in April, allocating INR 10,000 crores for three years to accelerate the adoption of EVs. The three main areas of implementation under the scheme are — demand incentives to reduce upfront cost of EVs, provisions to set up charging infrastructure and consumer awareness to promote EVs and Shared Mobility through IEC (Information, Education and Communication). As per the scheme, the users of electric and hybrid vehicles are exempted from paying road tax, registration fees and parking charges. Department of Heavy Industry(DHI) is the nodal department for planning, implementation and review of the scheme.
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