Initiatives by Government of India to Promote Electric Vehicle Usage

One of the major challenges in front of the Government of India is to reduce the greenhouse emissions and help nature restore to its extreme purity.

The Government of India is taking many steps. One such step is various initiatives towards switching to electric vehicles from the fuel vehicles.

To restore the eco-friendliness of our surroundings, electric vehicles can play a major role and can save billions of Rupees spent on importing fuel from other countries.

Let’s know more about various initiatives and schemes the Government of India has taken to promote the use of electric vehicles in both urban and rural India.

1. Fame 2 India

Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME India) is a scheme launched by the Department of Heavy Industries (DHI).

In 2015, the Phase – I of Fame was launched. With many improvisations, under the National Electric Mobility Mission Plan (NEMMP), DHI launched the Phase – II of FAME, also known as FAME 2 India.

It was launched on 1st April 2019, but further revised in 2021 with many improvements. The goal of FAME is to provide incentives and subsidy benefits to increase the usage of electric mobility in India through personal, public and shared electric vehicles.

In the early stage of FAME – II, the demand incentive was ₹10000 per KWH and cap incentive was 20% of the cost of the electric vehicle.

In June 2021, the FAME 2 India scheme got a revision and both the incentives were doubled.

The demand incentives are increased from ₹10000 per KWH to ₹15000 and the cap incentives are increased from 20% to 40%.

The step was taken because electric vehicle sales were not getting the needed growth. This initiative by the Government of India will definitely leave a positive impact on the society and people would start switching to electric vehicles from the fuel vehicles.

The leading electric vehicle manufacturers have appreciated the FAME – II initiative by regarding it as “a phenomenal move” by the Government of India.

Apart from this, through the ‘Fame 2 India’ scheme, the Government of India has taken the following step to promote increased usage of electric vehicles.

1. The Government of India is going to provide subsidies for 10 lakh electric two-wheelers, 55000 electric cars, 5 lakh electric three-wheelers and 7000 electric-buses.
2. The GOI is about to procure 10000 Electric Vehicles and 2000 charging stations for government office usage through Energy Efficiency Services Limited (EESL), promoted by the joint venture of the Ministry of Power and Government of India.
3. Reduction of GST from 12% to 5% on buying of electric vehicles and from 18% to 5% on setting up a charging station for EVs.
4. Removing the license requirement for setting up an electric vehicle charging station.
5. Up to ₹1.5 lakh income tax exemption on the loan interest taken to buy an electric vehicle.
6. Setting up 2700 charging stations at every 3 kilometers in urban & semi-urban areas and at every 25 kilometers on both sides of the road in the highways.
7. Target to phase out the production of Internal Combustion Engine based two-wheelers till 2025, 3-wheelers till 2023 and 4-wheelers till 2030.
8. Only electrical vehicles with Lithium-Ion batteries or more advanced power source will be eligible to avail the government scheme benefits.

Fame 2 Scheme will be applicable till 31st March 2022. We can expect more revisions on the FAME 2 India scheme till March 2022.

2. Rural e-Mobility Programme

CSC  e-Governance Service Common Services India Ltd. launched a rural e-Mobility Programme for the people of our rural India.

The aim of Common Service Center (CSC) is to promote the use of electric vehicles in the rural and semi-urban areas, for which they act as an access point of all the information and facilities.

Through a CSC people can easily book or buy their e-vehicles and avail the benefits of the schemes and subsidies provided by the Government of India.

Not to worry if you do not have enough money to buy an electric vehicle, CSC will also help you get an EV loan and low interest rates.

For this, CSC has tied up with various e-vehicle manufacturers and financial institutions.

Initially, the rural e-mobility programme was launched in only 100 CSC but they are expanding now. There are a total of 3.5 lakh CSCs in India which is also increasing.

One of the main focuses of the rural e-mobility program is to increase the set up of charging infrastructures in rural and semi-urban areas so that people feel comfortable in using EV and the usage of electric vehicles could increase.

Image Source: https://www.csc.gov.in/

Under the Rural e-Mobility program, CSC is also uplifting the employment and entrepreneurship. A Village Level Entrepreneur (VLE) is a CSC operator from that particular village area or gram panchayat.

The VLE takes care of the services provided to the people like helping in online utilities and financial facilities.

READ MORE : How Electric Vehicles Can Uplift Rural India

3. ‘Go Electric’ campaign

The ‘Go Electric’ Campaign was launched on february 2021 by Union Minister for Road Transport & Highways – Shri Nitin Gadkari and the Union Minister of State (IC) for Power and New & Renewable Energy – R.K.Singh.

The aim of the ‘Go Green’ Campaign is to reduce and finally phase out the fuel import from other countries and eliminate the dependency on fuels.

One of the best ways to achieve this is to spread awareness among people of India about the benefits of using electric vehicles for them and the country.

The campaign emphasizes more on electrification of the public transport services. Apart from electrification, this campaign also focuses on electric cooking and using the green energy produced from the agricultural waste and biomass.

4. National Mission on Transformative Mobility and Battery Storage

This is a Phased Manufacturing Program (PMP) for the Electric Vehicles and its components locally in India.

The aim of this program is to establish an ecosystem for the production of electric vehicles in India and take it to a global competition.

The current Prime Minister of India – Shri Narendra Modi launched this mission on 7 March 2019 which is valid till 2024 leaded by the Niti Aayog.

The target is to set up many Giga Plants to manufacture large-scale, export-competitive integrated batteries and cells. As a result, this program may lead to the following possibilities.

1. Reduction in the cost of electric vehicles because the main component of any EV is its battery.
2. Creation of electric vehicle ecosystem and increased charging station infrastructures.
3. Growth of manufacturing units for electric vehicles in India.
4. Ease of living will be there due to improved and affordable mobility.
5. Increased manufacturing units locally means new job opportunities.

You can read more about the program here

5. National Programme on Advanced Chemistry Cell Battery Storage (NPACC)

This scheme was launched by approving the proposal of the Department of Heavy Industries (DHI) by Government of India.

Though this initiative is focused on every sector where batteries are used, the main focus is the electric vehicle industry.

The Government of India is encouraging the production of Advanced Chemistry Cell (ACC) batteries because these batteries can store electrical energy in the form of electrochemical and chemical energy.

When required they can convert back the electrochemical and chemical energy to electrical energy.

Through the NPACC scheme, Government of India is planning to set up manufacturing units where 50 Gigawatt Hour (GWH) ACC batteries can be manufactured.

There are many expected benefits through this scheme.

1. Through the NPACC scheme, the Government of India wants to facilitate the demand creation for battery storage in India.
2. To reduce the greenhouse emission by facilitating electric vehicles.
3. Increased production of ACC batteries in the manufacturing units in India.
4. Incentives for the companies with increased sales and manufacturing of AAC batteries in local units.

You can read more about the NPACC scheme here.

Conclusion:

There are mainly few reasons behind these initiatives taken by Government of India.

1. To reduce the emission of  gases that increases the greenhouse effect.
2. To make the air healthy for breathing
3. To phase out the need of importing costly fuel from other countries.
4. To make India a manufacturing hub and a world leader in the electric vehicle industry.

The challenge to restore an eco-friendly environment is not at all easy. However, this could be achieved through constant planning and strategic investments throughout the duration of many years.

The above mentioned initiatives were taken to promote electric vehicle usage because it can play the biggest role in achieving an eco-friendly living environment.

Not just this, a lot of money could be saved and reinvested in the development of India and taking such more fruitful steps.

Sources :

1. https://www.deccanherald.com/national/csc-spv-launches-campaign-in-rural-india-to-promote-electric-vehicles-953694.html
2. https://www.saurenergy.com/ev-storage/csc-spv-launches-rural-e-mobility-program-to-promote-evs-in-rural-india
3. https://www.moneycontrol.com/news/technology/auto/government-raises-incentives-on-electric-two-wheelers-model-prices-to-come-down-7023731.html
4. https://www.thehindu.com/business/Industry/revised-subsidies-to-spur-ev-demand/article34800870.ece
5. https://www.financialexpress.com/auto/electric-vehicles/fame-ii-amendment-reaction-electric-two-wheeler-makers-ather-ola-okinawa-hero-bajaj-charging-range-review/2270386/
6. https://eseva.csccloud.in/evehicle/aboutus1.aspx
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8. https://pib.gov.in/PressReleasePage.aspx?PRID=1705892
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11. https://niti.gov.in/writereaddata/files/new_initiatives/Mission_notification.pdf
12. https://www.drishtiias.com/daily-updates/daily-news-analysis/national-programme-on-advanced-chemistry-cell-battery-storage