India offers $1.4 Billion to boost faster adoption of electric vehicle

Electric Vehicle

Recently, India opened it’s market for electric vehicles by launching another phase of FAME (Faster Adoption and Manufacturing of Electric (and Hybrid) Vehicles) scheme. Government recently approved Rs. 10,000 crores under this scheme.

Government has also developed a strategy which aims at both buyers and manufacturers. Under the strategy $1.4 billion in subsidies are to be offered, followed by a hike on import tariffs within the next year to spur domestic companies to build the vehicles. The scheme promises to lay out $1.4 billion in subsidies over three years for electric buses, three-wheelers, four-wheelers that are registered as commercial vehicles as well as private motorbikes and scooters.

Emphasis is on electrification of the public transportation that includes shared transport. The EV sector has still not grown in the country but few companies have started investing already. Indian companies such as Mahindra & Mahindra, Tata Motors, Ashok Leyland among others have begun making electric cars, autorickshaws and buses (as well as two-wheelers) that run on lithium-ion batteries.

Lithium-ion is another important component which acts as a deciding factor for growth of EV. Hence, efforts by the Government of India are being put in the storage sector as well with new tenders and schemes such as Saubhagya to boost Make in India initiative, as well as to bring down the prices.

India is mostly focusing on Electric Vehicle for public transport than private ones. Of the $1.4 billion, about $1.2 billion has been earmarked for subsidies, $140 million for charging infrastructure and some $5 million for administrative expenses and advertising. The balance $50 million is money that was committed in the existing policy which expires March, 2019.

India has set a target of achieving 30 percent electric mobility by 2030 in order to reduce dependence on fossil fuels to curb pollution and reduce its import bill. Nitin Gadkari, union minister for road transport, highways and shipping, had said that India aims to have at least 15 percent electric vehicles on its roads in five years.

Source: Forbes

A group of tech enthusiasts who are tracking latest developments in CleanTech with special focus on Energy Storage and Electric Mobility

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A group of tech enthusiasts who are tracking latest developments in CleanTech with special focus on Energy Storage and Electric Mobility

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