MOVING TOWARDS THE FUTURE: REVOLUTION OF ELECTRIC VEHICLES IN INDIA

Uniformity in Battery Technology

The Union Budget for 2022-23 has reiterated promoting electric vehicles as a means of transportation in the country. In addition to existing financial incentives under the FAME-II scheme (Rs. 10,000 crores) to boost demand and the PLI Schemes for ACC (Rs. 18,100 crores) and auto segment focused on EVs and other alternative energy technologies (Rs. 25,938 crores), the finance minister in the Budget announced plans to implement a battery swapping policy and formalize interoperability standards. Battery swapping is likely to gain acceptability in commercial applications like e2W and e3W and will help faster penetration in these segments, if implemented effectively. Further, this move will also help battery manufacturers to reduce costs through economies of scale. Interoperability standards for battery swapping will involve standardizing battery form and connectors to ensure seamlessness for customers who may use batteries and vehicles of different forms.

The finance minister also announced plans to further the push for EV penetration in public transport and create special mobility zones for EVs. This has been implemented in other regions like China and Europe to promote EVs, and will aid in increased EV adoption, in addition to allocations under the FAME II scheme. The inclusion of energy storage systems in the harmonized list of Infrastructure will facilitate easier credit availability and cheaper financing availability for the EV segment.

There is also a proposal to reduce customs duty for Nickel Ore and Concentrates from 5 percent to nil, ferronickel from 15 percent to 2.5 percent, nickel oxide and hydroxide from 10 percent to free. Nickel Manganese Cobalt is a key chemistry used in lithium-ion batteries, which are used in EVs. Given that nickel alloys are primarily imported, the reduction in customs duty will aid indigenous EV battery manufacturers in reducing production costs. Further, motors and controllers are critical EV components with moderate levels of localization currently. Reduction in customs duty from 10 percent to 7.5 percent in motor parts will also help reduce the cost of EVs.

Charge EV at home

Delhi becomes the first state in India to make residential societies and resident welfare associations (RWAs) an integral part of its EV mission. The Dialogue and Development Commission of Delhi, in collaboration with the World Resources Institute, released the "Residential EV Charging Handbook", which will help Delhiites to get step-by-step guidelines to install charging points for electric vehicles on their premises.

The guidebook addresses the common concerns of the RWAs like space planning not limiting to the present EVs, choosing the right mix of EV chargers, power load management, etc. As part of the initiative, the three DISCOMs - BRPL, BYPL, and TPDDL, have already empanelled more than 10 EV charger vendors, which will be providing trusted and certified chargers to the citizens, in accordance with the standards stipulated by the government. One can submit a request for EV charging point installation in less than five minutes, along with an EV charging connection (if required), through the respective DISCOM's Switch Delhi web page.

In the words of Minister of Transport of Delhi, Kailash Gahlot, "The policy not only encourages the purchase of EVS through demand-side incentives but also boosts supply-side infrastructure, such as charging point development, through subsidies to citizens and last-mile handholding,"

Women leading the revolution

The Delhi Metro Rail Corporation (DMRC), which introduced electric feeder buses at some of its stations last year, will soon operate electric auto-rickshaws on the routes with women behind the wheels. Till March 2022, the Delhi government received applications of 823 women out of 20,589 for the permit of e-autos. A scheme of registration of e-autos was introduced by the transport department of the Delhi government in October 2021. The scheme intends to replace fuel-driven vehicles contributing largely to pollution with eco-friendly electric buses and autos at the capital.

To provide visibility and ensure compliance and prevent misuse of the scheme, the department had also notified a special color scheme for these e-autos- lilac ones for women drivers and blue for the rest. As part of its ambitious Electric Vehicle Policy, the Delhi government is also providing a purchase incentive of Rs 30,000 per e-auto and the facility of loans with a 5% interest subvention through empanelled agencies, apart from exemption from registration fees and road tax under its EV policy. The government is also developing public charging stations as part of the policy.

The transport department had also organized a seven-day 'e-Auto Mela' a few months ago for the prospective e-auto drivers to see and drive all the available models apart from exploring loan terms available.

E- Carts as a medium to sell vegetables 

East Delhi Municipal Corporation (EDMC) had launched its online portal to accept applications for running battery-operated facilities in areas under its jurisdiction from March 2022. It allows five carts in each ward for selling packed eatables like cakes, muffins, bread and buns, and soft drinks. The selection of vendors will be done through a lottery.

The project aims to increase self-employment opportunities for those with no other source of income. Also, only residents of east Delhi can apply for the mobile cart services, officials said, adding these e-carts won't be allowed in commercial areas or on notified commercial roads to avoid congestion.