Mentor’s Comment

1. Give a brief introduction to the National Electric Mobility Mission Plan.
2. Give provisions focusing on fuel security
3. Give provisions for manufacturing reforms.
4. Conclude citing the needs of urgent policy actions.

Answer:

The National Electric Mobility Mission Plan 2020 (NEMMP 2020) aims to promote faster transformation from ICE to EVs. The FAME scheme focuses on a three phased approach to achieve the target of introducing six to seven million electrified vehicles on Indian roads by 2020.

The following are the vision that drived the policy objectives are as follows-
Climate change
 Problem of rapid global temperature increase has created the need for a reduction in the use of fossil fuels and the associated emissions.
 India has committed to cutting its GHG emissions intensity by 33% to 35% percent below 2005 levels by 2030.
Rapid urbanization
 Economic development leads to rapid urbanization in emerging nations as rural populations move non-agricultural sectors in cities creating environmental problems.
 According to a recent study by WHO, India is home to 14 out of 20 most polluted cities in the world. EVs will help in tackling this problem by reducing local concentrations of pollutants in cities.
Energy security
 India imports oil to cover over 80 percent of its transport fuel.
 EVs can reduce dependence on imported crude oil promoting India’s energy security.
Innovation
 It will encourage cutting edge technology in India through adoption, adaptation, an research and development.
 EVs manufacturing capacity will promote global scale and competitiveness.
Employment
 Promotion of EVs will facilitate employment growth in a sun-rise sector.
Clean and Low carbon Energy
 The shift towards renewable energy sources has led to cost reduction from better electricity generating technologies. This has introduced the possibility of clean, low-carbon and inexpensive grids.

It will help achieve national fuel security in following ways-
 Of the total oil consumption in the country, nearly 70 per cent of diesel sales and 99.6 per cent of petrol sales occur in the transport sector. The growth in energy demand from this sector outpaces growth in all other sectors and is estimated to reach 280Mtoe (Million tonnes of oil equivalent) in 2040, if it continues as per the present trend. Transition to electric mobility can significantly ease out the pressures of balance of payment.
 Improved energy security- As per the present trend, India would require nearly 1,600 million metric tonnes oil equivalent of petrol and diesel to fuel its passenger mobility sector between 2017 and 2030.
 India can save 64 per cent of energy demand from motorised vehicles by pursuing a shared, electric and connected mobility regime resulting in reduction of 876 million metric tonnoes oil equivalent of oil consumption by the year 2030.7 This could save India more than half of the cost of oil imports. Further, it will give impetus to manufacturing sector in following ways-
 Targeting six to seven million electric/hybrid vehicles in the country by 2020, it requires promotion of R&D in battery technology, power electronics, motors, systems integration, battery management system and testing infrastructure, promotion of charging infrastructure, research and development of EV technologies and push towards greater indigenization.
 The Central Government plans to replace its entire fleet of 5.5 lakh vehicles with electric vehicles in the coming four to five years to provide a thrust to investments in the EV eco- system.
 Establishment of Charging stations proposed on major highways connecting major city clusters on both sides of the road at an interval of about 25 km each, with total outlay of Rs 10,000 Crores.
 It provides 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.

However, electric mobility as a technology is at its nascent stage in India and the path to its successful implementation has multiple challenges. Presently, pure electric vehicle penetration in India is barely 0.1 per cent in private vehicles, about 0.2 per cent in two-wheelers and nearly zero for commercial vehicles.

The challenges for EV Industry in India are as follows-
 Lack of a stable policy for EV production: EV production is capital intensive sector requiring long term planning to break even and profit realization, uncertainty in government policies related to EV production discourages investment in the industry.
 Technological challenges: India is technologically deficient in the production of electronics that form the backbone of EV industry, such as batteries, semiconductors, controllers, etc.
 Lack of associated infrastructural support: The lack of clarity over AC versus DC charging stations, grid stability and range anxiety (fear that battery will soon run out of power) are other factors that hinder the growth of EV industry.
 Lack of availability of materials for domestic production: Battery is single most important component of EVs. India does not have any known reserve of lithium and cobalt which are required for battery production. India is dependent on countries like Japan and China for the import of lithium-ion batteries.
 Lack of skilled workers: EVs have higher servicing costs and higher levels of skills is needed for servicing. India lacks dedicated training courses for such skill development.

EVs are rapidly growing sunrise sector which can give push to ‘Make in India’. Establishing the right coordination among three pillars of EV industry i.e. urban planning, transportation and power sectors will assist in systematic adoption of EVs. Affordable, accessible, inclusive and safe mobility solutions are primary strategic levers for rapid economic development and improving ‘Ease of Living’.