Tuesday, 14 Jan, 2025
One of the important steps taken by the government towards making people aware of the EV Public Charging Stations was the launch of the e-AMRIT app. Image Source: IANS
In order to incentivise the production of batteries required for the electric vehicles, the Ministry of Heavy Industries (MHI) administers a Production Linked Incentive (PLI) Scheme namely “National Programme on Advanced Chemistry Cell (ACC) Battery Storage”.
The number of Electric Vehicle Public Charging Stations (EVPCS) in India have recently crossed the milestone of 25,000 as the number of EVPCS in India currently stands at 25,202. The Ministry of Heavy Industries (MHI) has been promoting the adoption of electric vehicles (EVs) in India. The PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) program was announced by MHI on September 29, 2024, with the goals of accelerating EV adoption, setting up charging infrastructure, and promoting the growth of the nation's EV manufacturing ecosystem. The two-year budget for this initiative is ₹10,900 crore. For the building of Electric Vehicle Public Charging Stations (EVPCS), ₹2,000 crore of the entire budget has been set aside.
Additionally, on September 17, 2024, the Ministry of Power (MoP) released "Guidelines for Installation and Operation of Electric Vehicle Charging Infrastructure-2024," which outlines the standards and procedures needed to establish a network of interconnected and interoperable EV charging infrastructure throughout the nation.
One of the important steps taken by the government towards making people aware of the EV Public Charging Stations was the launch of the e-AMRIT app. The e-AMRIT (Electric Vehicle Aggregated Mobile Resource for Information on Transport) app was launched on August 8, 2023. This initiative by the Government of India aims to provide comprehensive information about electric vehicle (EV) charging infrastructure across the country, including the location of charging stations, types of chargers available, and relevant government policies and incentives for EV adoption.
Source: Ministry of Heavy Industries
In order to incentivise the production of batteries required for the electric vehicles, the Ministry of Heavy Industries (MHI) administers a Production Linked Incentive (PLI) Scheme namely “National Programme on Advanced Chemistry Cell (ACC) Battery Storage”. The entire cost under the plan is ₹18,100 Crore for a 50 GWh capacity over five years following a two-year gestation period. After reaching Milestone-I, the incentive payment of the assigned amounts will start. In addition to achieving a value addition of at least 25 percent within two years (at the Mother Unit Level) from the appointed date, or Milestone-1, beneficiary firms must make sure that, by the end of two years from the appointed date, they have invested ₹225 Crore per GWh of the committed capacity. Within five years from the appointed date, or Milestone-2, they must raise it to 60 percent value addition.
Along with the establishment of a comprehensive domestic supply chain in the nation, the PLI-ACC Scheme envisions an investment that will increase domestic production and support the creation of demand for battery storage for both stationary storage and electric cars. The plan would boost the share of renewable energy at the national grid level and hasten the adoption of electric vehicles, which will result in significant savings on the oil import bill during the program's duration.
The electric vehicle market in India has come a long way from a sale of 7,772 units in 2015 to more than 1.5 million in 2023. The highest year-on-year growth in the sale of EVs in the country was recorded in 2016 at 531.22 percent. The EV sales jumped from 7,772 in 2015 to 49,065 in 2016. The rise in product availability in the market, the high cost of petrol, diesel, and compressed natural gas, as well as state subsidies and incentives provided under FAME II scheme, are all factors that contributed to the domestic EV industry's sales growth in 2022. Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME II), is a scheme launched by the Government of India to give a boost to development of Electric Vehicles. The Central Government has allocated a budget of ₹10,000 crore for the second phase of this scheme. The scheme was launched to achieve the goals of the National Electric Mobility Mission Plan (NEMMP). Phase I lasted from 2015 to 2019 and Phase II of FAME was launched in 2019.
Apart from the above mentioned schemes, the Government on September 15, 2021 approved the PLI Scheme for Automotive Sector with a budgetary outlay of ₹25,938 crore to support domestic manufacturing of vehicles. Electric vehicles are covered under this PLI scheme.
In a significant move aimed at revolutionizing the electric vehicle (EV) landscape in India, the Government of India approved the to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI) on March 15, 2024. The SPMEPCI represents a monumental step towards achieving Prime Minister Narendra Modi's vision of a cleaner, greener, and more self-reliant India. By leveraging the potential of electric vehicles, the scheme promises not only to mitigate air pollution, reduce the trade deficit, and lessen dependence on imported crude oil but also heralds a new era of innovation, employment generation, and economic prosperity.
Also, in order to promote the adoption of electric vehicles in the country, the GST on electric vehicles and chargers/charging stations has been reduced to 5 percent.
