Monday, August 18, 2014: National Electric Mobility Mission Plan (NEMMP) 2020 is all set to be approved by the government as this plan provides incentives of around Rs 140,000 million to promote cleaner electric vehicle technologies in India.
Deputy Heavy Industries Minister P Radhakrishnan said in a written reply to the Rajya Sabha, “A Scheme under the National Electric Mobility Mission 2020 has been proposed for Expenditure Finance Committee and Cabinet. The scheme is to be approved by EFC and cabinet.” This plan projects that there is a sales potential of 6-7 million units of new vehicles (Electric Vehicles or Evs), which would also save fuel to 2.2-2.5 million tonnes. This target can be achieved by 2020.
The Scheme has been designed in a way so that certain things happen in reality like faster adoption, domestic technology development and also manufacturing of full range cleaner electric vehicle technologies. These technologies include mild hybrid, full hybrid vehicles (HEVs), Plug in Hybrids (PHEVs) and Pure Electric Vehicles (BEVs). They lead to creation of strong, competitive and a self-reliable EV industry as well as its eco system in India. The Mission Plan 2020 also proposes that all vehicle segments come under the purview of the incentive scheme.
The scheme also suggests charging infrastructure, indigenous technology’s development, capacity building and measuring supply also in order to increase confidence for electric car and other vehicles. Industry estimates reveal that if the cost of internal combustion engine is Rs 5 lakh and an electric vehicle costs Rs 6.5 lakh, then the government would offer 35 per cent of the differential cost. This offer would become higher in case of two-wheelers. If India’s electric vehicle industry kicks off, then fuel will be saved up to Rs 400,000 million.
On 31 March, 2012, a scheme was ended by the Ministry of New and Renewable energy (MNRE) which offered 20 per cent subsidy to consumers who purchased electric four-wheelers and two-wheelers. This scheme provided a cash subsidy of Rs 4,000-5,000 for electric two-wheelers and Rs 1 lakh for electric cars. Then National Electric Mobility Mission Plan 2020 replaced this scheme from January 2013.
