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India government shows EV support with Roadmap to 2020

10 January 2013

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During its first meeting on 9 January 2012, the National Council for Electric Mobility (NCEM) adopted the National Electric Mobility Mission Plan 2020 (NEMMP 2020), setting the targets and providing the roadmap for achieving significant penetration of efficient and environmentally friendly electric vehicle technologies in India by 2020

The first meeting of the NCEM was held under the Chairmanship of Shri Praful Patel, Minister for Heavy Industry & Public Enterprises.

The NEMMP 2020 has set a target of 6-7 million units of new vehicle sales of full range of electric vehicles, (estimated fuel savings of 2.2 – 2.5 million tonnes to be achieved in 2020). CO2 emissions are expected to decrease by 1,3% to 1,5% in 2020 as compared to a status quo scenario.

Government support confirmed

The NEMMP 2020 is based on an in-depth primary data based study conducted jointly by the Government & the Industry and detailed stakeholder consultations involving all related Government Ministries, the automotive industry, battery manufacturers, academia and research institutes.

The NCEM supported the strong upfront & continued support by the government, which would be essential to realise this demand potential. The government will provide the initial impetus through demand support measures to facilitate faster consumer acceptance of these newer technologies which have a higher cost of acquisition.

In addition, the government will also facilitate automotive R&D and put in place charging infrastructure. It is estimated that the total investment required will be in the range of Rs 20,000 – Rs 23,000 crores (€2,8-€3,2 billion) of which the support required to be provided by the Government will be to the tune of Rs 12,250 – Rs 13,850 Crores (€1,7-€1,9 billion) over the next 5-6 years.

Cost-Benefit analysis

Cost-benefit analysis shows that if India meets the 2020 targets, there would be huge benefits in fuel savings, lowering of carbon emissions, lowering of other emissions, and job creation.

The substantial savings resulting from a decrease in liquid fossil fuel consumption due to the shift to electric mobility will more than offset the support provided thereby justifying this initiative as an economically viable proposition.

In addition, given the substantial mitigation of adverse impact of transportation on the environment, the NCEM was of the firm belief that supporting the faster adoption of hybrid & electric vehicles and their manufacture in India will be a wise investment that is needed to make for future generations.

Next steps

The NEMMP-2020 document is planned to be formally unveiled very soon. The work for implementation of the plan is being headed by DHI with the support of NATRiP and will involve finalization and roll out of comprehensive array of interventions, schemes, policies and projects during the next few months.




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