India’s Air pollution has been growing at an
alarming rate. The NCR and other metro cities are mostly affected by the
pollutants which have led to rising in diseases like- asthma, premature death,
and strokes due to particulate matter.
In recent years due to economic growth, India is
having a tremendous rise in sales of vehicles. Rise in the level of incomes,
urbanization and population growth has lead to an increase in sales of cars and
vehicles. Due to many diesel and petrol vehicles, there has been rise in Carbon Monoxide, Nitrogen Dioxide, Particulate
matter, and Sulphur Dioxide.
Delhi government tried odd-even scheme,
banned construction work for certain days in recent years to curb the
pollution.
However, the pollution is not slowing down. There are not only health hazards but also environmental
issues which impact the entire planet. India has challenges to manage it.
FAME SCHEME
India introduced FAME Scheme to help Indian automobiles to offer incentives on hybrid vehicles. Fame stands for faster adoption and Manufacturing of Hybrid and Electric Vehicles.
India introduced FAME Scheme to help Indian automobiles to offer incentives on hybrid vehicles. Fame stands for faster adoption and Manufacturing of Hybrid and Electric Vehicles.
This is applicable in all over India
for two /three wheelers and for four wheelers at the selected area. It has
been launched under National
Electric Mobility Mission Plan (NEMMP) with an aim to promote eco-friendly
vehicles in the country.
In order to promote manufacturing of electric
and hybrid vehicle technology and to ensure sustainable growth of the same,
department of Heavy Industry is implementing FAME- India scheme –phase 1 was
implemented from 1st April 2015. The scheme which was initially up
to 31st April 2017 has been extended up to 31st march
2019. Or till Notification of FAME –II, whichever is earlier.
The phase- II of the FAME scheme proposes to give a push to electric vehicle in
public transport and seeks to encourage adoption of EV’s by way of market
creation and demand aggregation. The draft scheme envisages the holistic growth
if EV industry, including providing for charging infrastructure, research and
development electric vehicle technologies and push towards greater
indigenization.
Total outlay of phase-I of the FAME- India
scheme has been enhanced from Rs. 795 crores to Rs- 895 crore.
Some focus areas and details
Under Demand creation focus area, the purchaser
of electric vehicle and hybrid vehicles is given an upfront reduction in
purchase by the dealer at the time of purchase of old electric vehicles.
Since inception of scheme & till 6th December, the government
has given financial support (demand incentive) to about 2, 61,507
electric/hybrid vehicles.
119 models of vehicles of 27 original equipment manufacturers got registered under FAME- India scheme for availing demand incentive.
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Sedition Charges |
119 models of vehicles of 27 original equipment manufacturers got registered under FAME- India scheme for availing demand incentive.
Several segments have been added to the scheme
so as to ensure that more people take advantage of this scheme. The positive
results of these efforts are borne out by the fact that DHI has so far
sanctioned 455 electric buses for 9 cities in a pilot scheme launched on 31st
October 2017, which got interest from 44 cities seeking 3144 e-buses.
India’s Electric Mobility Transformation Report
NITI Aayog a think tank of India government and
rocky mountain institute has released a report on April 6th 2019 –
titled “India’s Electric Mobility Transformation: progress to Date and Future
Opportunities”. The report analysis the opportunities for the automobile sector
and government under the FAME II scheme
Key features of the report
The electric buses covered by FAME II will
account for 3.8 billion vehicle kilometres travelled over their lifetime. There
would be considerable energy and CO2 savings associated with two-, three-, and
four wheelers and buses covered by FAME II over their lifetime, as well as the
potential savings associated with greater adoption levels by 2030.
In order to capture the opportunity potential in
2030, batteries must remain a key focal point since they will continue to be
the key cost drivers of electric vehicles.
Vehicle eligible under FAME II scheme can
cumulatively save 5.4 million tonnes of oil equivalent over their lifetime
worth Rs 17.2 thousand crores.
Electric vehicles sold through 2030 could
cumulatively save 474 million tonnes of oil equivalent worth Rs 15 lakh crore
and generate net CO2 savings of 846 million tonnes over their operational
lifetime.
Challenges in India
Availability of lithium India does not have
adequate lithium reserves to facilitate manufacture of lithium –ion-batteries.
Besides, china has been trying to establish a monopoly on lithium reserves by
acquiring assets in countries that have rich lithium reserves such as Bolivia,
Chile etc. thus securing lithium supplies could be a major challenge for India.
Poor manufacturing base the lack battery
manufacturing in India further make the Indian electric vehicles market
dependent on china for imports just s solar power developers’ source cheap
modules and equipment from china. This does not augur well for the local
industry.
Enabling environment electric vehicles would
also require charging infrastructure to be set up in tandem. Currently,
electricity sales in the country are regulated under the electricity Act and
can be carried out with distribution license from SERCs. To set up a pan-India
charging infrastructure, an overhaul of existing regulations is needed.
Besides, there is no plan for the government to
develop nationwide charging infrastructure. On the contrary, it sees this as an
opportunity for commercial operators did discoms. But for electric vehicles to
become convenient and popular, developing charging infrastructure is crucial.
Managing power electric vehicle can load the
distribution networks with a surge in demand, thus burdening regular power
supplies infrastructure. EV loads, being of intermittent nature, will have to
be managed.
High infrastructure costs involved-currently the
cost of setting up a rapid-charging outlet ranges close to INR 25 Lakh, while
that of a slow charging station will be around INR 1 lakh. Building an
extensive network of charging stations would, therefore, require substantial
investments.
More expensive electric vehicle is costlier than
traditional cars on account of the cost of lithium-ion batteries that make up nearly
50% of total costs. Further, Electric vehicles are costly on account of the
components used in them.
Performance Electric vehicle cars are not as
fast as a conventional vehicle. Besides, laxity in safety standards of
equipment used in Electric vehicle manufacturing also impinges on their safety.
A Way Forward
India needs active participation from the auto
industry to ease electric mobility transition. The auto and battery industry
could collaborate to enhance customer awareness, promote domestic manufacturing,
promote new business models, conducts R&D for electric vehicles and
components, consider new business models to promote electric vehicles.
India’s electric vehicle market is poised for
growth with a blend of policies, such as FAME II and the automotive industry’s
willingness to provide new mobility solutions to the citizens of the country.
Such transformation will create enormous economic, social and environmental
benefits for Indians.
The government should focus on phased
manufacturing plan to promote electric vehicles, provide fiscal and non-fiscal
incentives for phases manufacturing if electric vehicles and batteries.
Different government departments can consider a bouquet of potential policies,
such as congestion pricing, ZEV credits, low emission/exclusion zones, and
parking policies among others to drive adoption of electric vehicles.
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