In an ambitious stride towards achieving national fuel security, the Indian Government has launched the National Electric Mobility Mission Plan (NEMMP). This plan aims to catapult the sales of electric and hybrid vehicles to 6-7 million by 2020. The goal is to make these eco-friendly vehicles the top choice for buyers, replacing traditional vehicles and curtailing the consumption of liquid fuels in the automobile sector.
The Pillars of NEMMP
The National Electric Mobility Mission is a comprehensive scheme that sits on several policy pillars. These include demand-side incentives to facilitate the acquisition of hybrid/electric vehicles and extensive promotions for R&D in technology realms such as battery technology, power electronics, motors, systems integration, and battery management system. Providing an upgrade to the testing infrastructure and reinforcing industry participation are also key components of this policy.
Another major aspect of NEMMP is promoting charging infrastructure and supply side incentives. These efforts aim to ensure hybrid and electric vehicles are not just a purchasable option, but a convenient and practical one too. Adding to the versatility of NEMMP, retro-fitment of on-road vehicles with its hybrid kit is encouraged.
FAME India: Igniting Electric Mobility Growth
Under NEMMP 2020, the government initiated the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME India) scheme. This scheme seeks to stimulate the manufacturing of electric and hybrid vehicle technologies, thereby fostering domestic capabilities in the automobile sector.
Achievements and Objectives
Operating under the umbrella of national energy security, NEMMP aims to mitigate the adverse impact of vehicles on the environment. By promoting the production and use of electric and hybrid vehicles, the mission places a strong emphasis on sustainability and environmental conservation. At the same time, it also focuses on boosting domestic manufacturing capabilities.
| Objective | Strategy |
|---|---|
| National energy security | Promotion of hybrid and electric vehicles |
| Environment Conservation | Reduced dependency on fuel-burning vehicles |
| Growth of domestic manufacturing | Incentivizing local vehicle production |
Revving Up Adoption: Government Initiatives
The Indian Government has laid out a roadmap to expedite the adoption of electric vehicles. Key measures include announcing a tax cut on loan amounts procured for purchasing electric vehicles. Drastically reducing the Goods and Services Tax (GST) rates on electric vehicles from 28% with cess to 12% without cess has been another significant step.
Furthermore, the sale of electricity for charging electric vehicles has been classified as a ‘Service’. This move aims to provide ample incentives to attract investments in charging infrastructure. The Ministry of Road Transport Highways has also issued a notification exempting battery-operated vehicles from permits, further facilitating the adoption of electric vehicles in India.