{"id":48936,"date":"2019-07-06T19:00:22","date_gmt":"2019-07-06T13:30:22","guid":{"rendered":"https:\/\/blogadmin.forumias.com\/?p=48936"},"modified":"2019-07-06T16:30:16","modified_gmt":"2019-07-06T11:00:16","slug":"7-pm-government-steps-on-the-gas-to-put-indias-ev-mission-in-fast-lane-6th-july-2019","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/7-pm-government-steps-on-the-gas-to-put-indias-ev-mission-in-fast-lane-6th-july-2019\/","title":{"rendered":"7 PM | Government steps on the gas to put India\u2019s EV mission in fast lane | 6th July, 2019"},"content":{"rendered":"\n<p><strong><a href=\"https:\/\/drive.google.com\/open?id=1yZAaLo2CzGUxLySaoc84xJ3s38X54Axt\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"Read\u00a0In-depth analysis of all the Editorials here (opens in a new tab)\">Read\u00a0In-depth analysis of all the Editorials here<\/a><\/strong><\/p>\n\n\n\n<p><strong>Context:<\/strong> The\ngovernment drive towards electric vehicles for a sustainable future.<\/p>\n\n\n\n<p><strong>More in news: <\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Niti Aayog\u2019s emobility plan: only electric\nvehicles to be sold by 2030.<\/li><li>Infrastructure over incentive to promote\nelectric vehicle: Economic survey.<\/li><\/ul>\n\n\n\n<p>Transportation is backbone for growth of an economy. India is one of\nthe fastest growing economies in world and would continue growing in coming\nfuture. &nbsp;At present, transportation\ncontributes 14% of GDP but at the same time, it is second largest contributor\nof pollution. So for a sustainable future, India should move towards promoting\nelectric vehicles in transportation sector.<\/p>\n\n\n\n<p><strong>What is the need of Electric Vehicle?<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Air Pollution: <\/strong>A new study by \u2018IQAir AirVisual\u2019 and \u2018Green Peace\u2019 has identified the\ncities where air pollution is highest. This list is dominated by India, with 7\nof the worst 10 cities, and 22 of the worst 30 cities. A Green Peace India\nreport indicates that 47 million children under the age of 5 years are residing\nin areas hazardous pollution, especially in urban areas.<\/li><li><strong>Disposable\nIncome: <\/strong>According\nto the Economic Survey (2017-18) of India, an increase in available disposable\nincome among citizens has led to an increase in the purchase of vehicles and a\nreduction in the use of public transport. Roads are the dominant medium of\ntravel in the country, and as of 2016 there were 229 million vehicles on the\nroad. With over 3 million vehicles sold in 2016-17 in the four-wheeler segment alone,\nthe total number of vehicles burning petrol and diesel, and spewing dangerous\nfumes into the air is over 230 million. <\/li><li><strong>Oil imports: <\/strong>Speaking at the \u2018Urja Sangam Conference\u2019 in March 2015, the Prime\nMinister has said that India needs to bring down its oil import dependence from\n77% in 2013-14 to 67% by 2022.<\/li><li><strong>Energy Demand: <\/strong>Electric vehicles are also expected to help generate fresh demand for\nelectricity. The lack of which is weighing down the entire power sector and\nalso help in resolving the stress assets conundrum. Any uptake in demand for power will help improve the\nfinancial viability of these stressed power sector projects. This in turn would\nimprove the per capita power consumption of around 1,200 kWh\u2014one of the lowest\namong the large economies.<strong><\/strong><\/li><li><strong>Paris Commitments: <\/strong>With the government of India targeting 100 GW of solar by 2022,\nelectric vehicle can improve reliability and utilization of renewable by acting\nas storage.<\/li><li><strong>Global Studies: <\/strong>There are\nseveral studies that suggest overall positive impact on GDP on introduction of\nEVs in fuel importing service dominated economies. One study has estimated that\ndriving the shift to electric vehicles would lead to a 1% increase in EU GDP.\nIn another study, net private and social benefits are estimated between $300\nand $400 per EV.<strong><\/strong><\/li><\/ul>\n\n\n\n<p><strong>Government Initiatives with respect to Electric\nVehicles:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>National electricity mobility mission plan:<\/strong> Government\nof India launched the National Electric Mobility Mission Plan (NEMMP) 2020 in\n2013. It aims to achieve national fuel security by promoting hybrid and\nelectric vehicles in the country. There is an ambitious target to achieve 6-7\nmillion sales of hybrid and electric vehicles year on year from 2020 onwards.\nGovernment aims to provide fiscal and monetary incentives to kick start this\nnascent technology. With the support from the Government, the cumulative sale\nis expected to reach 15-16 Million by 2020.<strong><\/strong><\/li><\/ul>\n\n\n\n<figure class=\"wp-block-image is-resized\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" src=\"https:\/\/i0.wp.com\/blogadmin.forumias.com\/wp-content\/uploads\/2019\/07\/the-key.jpg?resize=289%2C643&#038;ssl=1\" alt=\"\" class=\"wp-image-48937\" width=\"289\" height=\"643\"\/><\/figure>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Fame India scheme:<\/strong>\nGovernment has launched the scheme namely Faster Adoption and Manufacturing of\n(Hybrid &amp;) Electric Vehicles (FAME India) under NEMMP 2020 in the Union\nBudget for 2015-16 with an initial outlay of Rs. 75 Cr. The scheme will provide\na major push for early adoption and market creation of both hybrid and electric\ntechnologies vehicles in the country. The thrust for the Government through\nthis scheme will be to allow hybrid and electric vehicles to become the first\nchoice for the purchasers so that these vehicles can replace the conventional\nvehicles and thus reduce liquid fuel consumption in the country from the\nautomobile sector.<strong><\/strong><\/li><li><strong>State initiatives:<\/strong> <strong>&nbsp;a\nhandful of states have managed to put a policy in place in order<\/strong>&nbsp;to\ngive some certainty to electric vehicle manufacturers. These states are in sync\nwith the&nbsp;<strong>Centre coming out with a specific policy to promote EVs\nwith a mix of incentives, fiscal sops, and encouragement to expand this\necosystem.<\/strong> <\/li><\/ul>\n\n\n\n<p><strong>Challenges faced by Electric Vehicles sector: <\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Capital Investment: <\/strong>The\nmove to electric vehicles (EVs) will need a considerable investment of&nbsp;\u20b91.8 lakh crore in setting up charging stations and other\ninfrastructure in the country, according to a report by Feedback Consulting. <\/li><li><strong>Lithium reserves<\/strong>: The battery is\nthe most important part of the electric vehicle. Electric vehicles are mostly\nrun by lithium-ion batteries. 65% of the lithium reserves are in Chile and\nBolivia, India accounts for 7% of lithium reserves. Along with that Chinese\nfirms command over 60% of the global battery market share. Thereby India is\ndependent of import of lithium reserves.<\/li><li><strong>Charging infrastructure:<\/strong><strong> <\/strong>Even in major cities,\nresidential areas, offices or pay and park locations offer no support for\nelectric vehicle charging. Additionally, actual charging stations are far and\nfew in between. The choice of LPG vs CNG is common in India and a major\ndeciding factor is fuel availability. Until people can be assured that they\nwon\u2019t find themselves struggling for a charge up, the push for a purchase will\nnever arrive.<strong><\/strong><\/li><li><strong>Dealer reluctance: <\/strong>&nbsp;Electric\nvehicles are very cheap to run. They don\u2019t have as many moving parts and don\u2019t\nhave requirements like engine oil, injector clean ups, or tuning. Wear and tear\ncomponents like brake pads and tyres will still need replacement, but electric\npower trains are far less complicated and far more efficiently designed than\ntheir internal combustion engine-equipped counterparts. Given the drop in\nservice costs, dealers will expect an alternative revenue source.<strong><\/strong><\/li><li><strong>Policy conundrums: <\/strong>An effective charging infrastructure is required the\nnecessary regulations around creating the ecosystem for electrical vehicles to\noperate smoothly. Also as per the regulations for electricity sales in the\ncountry, under The Electricity Act, 2003, a distribution license is required to\ndistribute power from respective state electricity regulatory commissions\n(SERCs). Given the number of regulators involved, it makes sense for a\npan-India license but that would require a lot of heavy lifting including a\ncomprehensive review of existing laws and regulations.<strong><\/strong><\/li><li><strong>Automotive industry concern:<\/strong> <strong><\/strong><\/li><\/ul>\n\n\n\n<figure class=\"wp-block-image\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" width=\"492\" height=\"309\" src=\"https:\/\/i0.wp.com\/blogadmin.forumias.com\/wp-content\/uploads\/2019\/07\/tug.jpg?resize=492%2C309&#038;ssl=1\" alt=\"\" class=\"wp-image-48938\"\/><\/figure>\n\n\n\n<p><strong>Measures to be taken to promote Electric Vehicles\nindustry:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Providing\ncharging infrastructure<\/strong>: The limiting factor of batteries on\ndriving range may be addressed by developing an ecosystem of fast-charging or\nswapping of batteries, by creating an infrastructure, maybe even every\nkilometer, in dense areas. A smaller battery will lower costs by reducing the\ntotal weight of the vehicle, resulting in higher energy-efficiency and improved\nability to upgrade as the technology evolves. Charging infrastructure can be\nrolled out on a city by city basis with select cities and regions leading the\ntransition. This would be consistent with global experience where 33 percent of\nall EV sales take place in only 14 cities where charging infrastructure is\nwidespread and convenient to use.<\/li><li><strong>Long term agreement with other countries:<\/strong> Lithium and cobalt are critical elements in\nbatteries that power mobile phones, laptops and electric vehicles, the\ncenterpiece of future transport solutions.&nbsp;The Indian government should direct private and public\nsector companies to ink long term agreement with resource rich countries like\nBolivia and Chile.<\/li><li><strong>Policy push:<\/strong> Think tank NITI Aayog and government of india is pushing towards all electric\nvehicles by 2030. The\ngovernment has been actively taking steps to create an ecosystem for EVs. These\ninclude fiscal and non-fiscal measures to create demand for such vehicles as\nwell as adequate supplies. &nbsp;The tax on lithium-ion batteries used by EVs\nwas reduced to 18% last year. The Goods and Services Tax (GST) Council set up a\ncommittee to discuss cutting tax on EVs and battery chargers and leasing of\nsuch vehicles. Besides, the road ministry proposed an exemption of registration\nfees for battery-operated vehicles. Government should expedite above incentives\nfor sustained growth electric vehicles sector.<\/li><\/ul>\n\n\n\n<p><strong>Conclusion:<\/strong> India\nhas a lot to gain by converting its ICE vehicles to EVs at the earliest. Its\noil-import bill would considerably reduce. ICE vehicles are a major contributor\nto pollution in cities and their replacement with EVs will definitely improve\nair quality. There is a real possibility of getting this done in the next five\nto seven years. This would however require innovations, a policy regime that\nencourages access to latest technologies and a concerted effort by the Indian\nindustry to achieve global competition through acquiring the necessary scale\nand using cutting edge technology.<\/p>\n\n\n\n<p>Source: <a href=\"https:\/\/www.livemint.com\/budget\/news\/govt-steps-on-the-gas-to-put-india-s-ev-mission-in-fast-lane-1562350841874.html\">https:\/\/www.livemint.com\/budget\/news\/govt-steps-on-the-gas-to-put-india-s-ev-mission-in-fast-lane-1562350841874.html<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Read\u00a0In-depth analysis of all the Editorials here Context: The government drive towards electric vehicles for a sustainable future. More in news: Niti Aayog\u2019s emobility plan: only electric vehicles to be sold by 2030. Infrastructure over incentive to promote electric vehicle: Economic survey. Transportation is backbone for growth of an economy. India is one of the&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/7-pm-government-steps-on-the-gas-to-put-indias-ev-mission-in-fast-lane-6th-july-2019\/\">Continue reading <span class=\"screen-reader-text\">7 PM | Government steps on the gas to put India\u2019s EV mission in fast lane | 6th July, 2019<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":3567,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[130],"tags":[],"class_list":["post-48936","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-7-pm","entry"],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2017\/07\/brief-image.jpg?fit=1000%2C500&ssl=1","views":{"total":0,"cached_at":"","cached_date":1700575566},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/48936","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=48936"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/48936\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media\/3567"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=48936"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=48936"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=48936"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}