Top 10 support policies for the Indian electric vehicle market

The Indian government launched the National E-Mobility Plan in March 2018 to achieve 100% electromobility
by 2030.
Since then, the country has taken several policy initiatives that have driven the growth of
electric mobility in the country.

These initiatives come from many ministries such as the Ministry of Road Transport and Highways, the Ministry of Heavy Industry, the Ministry of Industrial Policy and Promotion, the Ministry of Finance, the Ministry of Housing and Urban Affairs, the Ministry of Electricity and the Ministry of New and Renewable Energy, among others
.
Meanwhile, several states such as Delhi, Kerala, Maharashtra, Karnataka and other states have also developed their own electric vehicle policies, while other states are developing such policies
.
Here are ten policy initiatives to support the implementation of e-mobility in India:

FAME II

The Cabinet of the Indian Government approved a proposal for the implementation of the "Faster Adoption and Manufacturing of Electric Vehicles in Phase II in India" (FAME II) with a total budget of about US$1.
4 billion
.
The duration of the program is three years, effective
April 1, 2019.

For the three- and four-wheeled electric vehicles (e-3W and e-4W) segments, incentives apply primarily to vehicles for public transportation or commercial use
.

Model Building Law

India's Ministry of Housing and Urban Affairs has issued amendments to the Model Building Act (MBBL) to provide EV charging infrastructure
for residential and other buildings, including collective housing buildings.

Under the amendments, any charging station or any type of building premises installed in public or private areas to cater to the commercial charging model of electric vehicles will be considered a "public charging station"
.

Charging station guide

India's Ministry of Power has announced guidelines for the development of
EV charging infrastructure in India.
According to the document, the cost of supplying electric vehicle charging stations to private charging stations such as homes and offices will not exceed 115%
of the average electricity cost.
Any charging station can also get electricity
from any company via an open access agreement.

License-free

The Ministry of Power has issued a clarification statement that no license
is required to operate EV charging stations in India.
The reason for the license exemption is that the government treats EV charging stations as a service rather than a sale
of electricity.

Phased manufacturing plan

To boost domestic EV manufacturing, the government has proposed a phased manufacturing roadmap to build a manufacturing ecosystem
in the country.

Under the phased manufacturing plan, the government has imposed a 15 percent tariff on components used to make electric vehicles, such as AC or DC chargers and motors, energy monitoring, recovery braking systems, electric compressors, power control units, etc
.
New tariff revisions will be presented
in April 2021.

Rationalize taxation

The government has reduced tariffs on imported EV components to 10-15%.

Until now, importing assembled EV components in India required import duties
of 15-30%.
However, with this move, assembled parts only need to be taxed by 15%.

In addition, the government reduced the goods and services tax rate for lithium-ion (lithium-ion) batteries from 28% to 18%.

technology transfer

Recently, the Vikram Sarabhai Space Centre under the Indian Space Research Organisation (ISRO) invited applications for qualification for the commercialization of its indigenously developed lithium-ion battery technology
.
So far, 10 companies have been shortlisted for technology transfer
.

Green license plate

India's Ministry of Road Transport and Highways has announced that private and commercial electric vehicles will receive green license plates
.

Exemption from transport permits

India's Ministry of Road Transport and Highways has also announced that all battery-powered, ethanol-powered and methanol-powered transport vehicles will be exempt from the permit requirement
.

PPP mode

India's National Institute for Transformation (NITI) has issued a public-private partnership (PPP) concession agreement for the operation and maintenance
of electric buses in cities across the country.

Under this model, concessionaires will be required to incur the necessary capital expenditure (CAPEX) for the procurement of electric buses, operation and maintenance of infrastructure, and the authorities will calculate operating expenditure
per kilometer.