Electric Vehicles in India

Prelims level : Governance G4 - Schemes Mains level : GS3I - Infrastructure: Energy, Ports, Roads, Airports, Railways, etc.
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Fame 2(Faster Adoption and Manufacturing (Hybrid&) and electric vehicles

 

  • The outlay of ₹10,000 crore has been made for three years till 2022 for FAME 2 scheme.
  • The centre has sanctioned ₹8,596 crore for incentives, of which ₹1,000 crore has been earmarked for setting up charging stations for electric vehicles in India.
  • The government will offer the incentives for electric buses, three-wheelers and four-wheelers to be used for commercial purposes.
  • Plug-in hybrid vehicles and those with a sizeable lithium-ion battery and electric motor will also be included in the scheme and fiscal support offered depending on the size of the battery.

Electric Infrastructure

  • The centre will invest in setting up charging stations, with the active participation of public sector units and private players.
  • It has also been proposed to provide one slow-charging unit for every electric bus and one fast-charging station for 10 electric buses.

Incentives

  • To encourage state transport units (STUs) to buy more electric buses, ₹20,000 per kW will be offered as incentive.
  • FAME 2 will offer incentives to manufacturers, who invest in developing electric vehicles and its components, including lithium-ion batteries and electric motors.
  • The centre has asked states to frame their EV policy and provide additional fiscal and non-fiscal incentives to manufacturers and buyers.

Why the government is pushing EVs to fight climate change

  • India has been at the forefront of aligning its policies with its commitment to the Paris accord on climate change, signed in 2016.
  • The accord aims to pursue efforts to limit the global temperature rise to 5ºC above pre-industrial levels.

Why is the central government promoting the adoption of electric mobility?

  • To reduce the import of crude oil
  • NITI Aayog, the government think tank is tasked with devising a mass electric energy-based transport system in India,

What are the main Obstacles in adopting electric mobility?

  • A battery, depending on its capacity, will keep a vehicle running at a certain speed for a certain duration.
  • Lack of charging infrastructure
  • High cost difference between ICE-based vehicles
  • firms have invested in making lithium-ion cells for batteries—most of the EV makers assemble the battery packs
  • India also lacks the important minerals, lithium and cobalt, that go into making lithium batteries, which are imported from China.
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