Sansad TV: Committee Report- Electric Vehicles & Hybrid Mobility | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly - UPSC PDF Download

Introduction

Observations and Analysis

National Policy:

• Thirteen states have notified dedicated EV policies, with 12 others in the process of formulating theirs.
• These policies focus on incentives to lower vehicle ownership costs and promote local manufacturing.
• The committee recommends aligning central and state-level policies to create a unified national policy for EV adoption.

FAME India:

• The FAME scheme, initiated in April 2015, aims to develop the market and manufacturing ecosystem for electric and hybrid vehicles.
• The second phase, launched in April 2019, allocates Rs 10,000 crore over three years for subsidizing EV purchases and charging infrastructure.
• The committee suggests broadening the scheme's scope to include funding for research, development, local manufacturing of EV components, and extending incentives for four-wheeler EV purchases.

Battery Manufacturing:

• India relies heavily on international markets for lithium-ion batteries, the primary battery used in EVs.
• The Production Linked Incentive (PLI) scheme for Advanced Chemistry Cell (ACC) aims to incentivize local ACC manufacturing.
• The committee recommends revising eligibility criteria for the PLI scheme, scaling up local manufacturing, and forming international consortia for joint research and investment pooling.

Research and Development:

• India's spending on research and development for technological advancements is below one percent, while major economies allocate around five to six percent.
• The committee urges the government to increase research and development funding to promote indigenous manufacturing and reduce import dependency.

Charging Infrastructure:

• Under FAME India's second phase, 2,877 charging stations have been sanctioned in 68 cities.
• The committee highlights the need for a dense and robust charging infrastructure, universal charging provisions, and a live database of charging stations. Corporate Social Responsibility could fund these initiatives for two to three years.
• Subsidized billing rates for public charging points and separate metering arrangements are recommended.

Financing:

• Import duties on non-locally manufactured components have increased from 5% to 15% to promote local manufacturing.
• EVs are taxed at 5% GST, while hybrid EVs face a 43% tax (28% GST plus 15% Cess).
• The committee recommends phased import duty increases, lower GST on hybrid EVs, and designating EVs as a priority lending sector to facilitate easier access to loans for components and vehicle procurement.