A Parliamentary panel recommended the government increase subsidies and incentives to electric vehicles to accelerate the transition to electric mobility.
India is primarily a two-wheeler driven market, with almost 22 million sales per year. The Government recently, under FAME-II [Faster Adoption and Manufacturing of Hybrid and Electric Vehicles in India] scheme, has increased the subsidy/incentive from Rs 10,000 per Kwh [Kilowatt hour] to Rs 15,000 per Kwh and an increase in the cap on incentive for electric two-wheelers from 20 per cent to 40 per cent of the cost of vehicles.
The committee is hopeful that the increase in subsidy and the ceiling limit would help in demand creation in the electric vehicle segment, the panel said.
The Department Related Standing Committee on Industry, in its report title 'Electric and Hybrid Mobility-Prospects and Challenges in Automobile Industry' said that the scope of the FAME-II should be broadened to include funding/grants for electrified vehicle components development and R&D, development of components for charging infrastructure and capital subsidy/incentive for manufacturing electric vehicle components.
On charging stations, the panel suggested that sub-meter or separate meter arrangements may be installed for billing the charging point used exclusively for EV charging by domestic consumers to keep the electricity bill affordable and encourage potential buyers to go for EVs.
“To improve the mobility services, it is advisable to have a live database of active charging stations installed all over the country and the locations readily available for the consumers for their reference enabling them to easily track the nearest charging station at times of need while on the move. The committee, therefore, urges that the government may put in place such a facility for enhancing the e-Mobility services,” the panel said.
To increase the number of charging stations, the government may explore installing smart meters on electric poles at dedicated locations and make small charging stations across the city/villages/highways and issue smart cards to the EV owners, who can charge their batteries anywhere, which can be a good booster for faster adoption of electric vehicles, the panel in its report said.
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