Mahindra MD Anish Shah emphasises India’s shift toward green energy and temporary EV subsidies at the ET Awards CEO Roundtable 2024.
Anish Shah, Managing Director of Mahindra & Mahindra, has announced the company’s ambitious goal to achieve 100% renewable energy consumption in the next two years. Forcing his thoughts at the ET Awards CEO Roundtable 2024, he deems transition to green energy one of the primary moves for India in future. They add that the renewables have already taken over and that is unstoppable now.
The economics of the whole concept, says Shah, was a lot cheaper than fossil fuel and if that is another logical reason for sustainable growth then it is indeed an option. This future nonresident India could be vitiated by import bills for fuel, which must be lowered if India is to progress, said Shah. “It will be cheaper and the whole future looks bright,” he said.
Reducing Fuel Import Bills
He stated, “That makes it an economising option, both for businesses and household consumers.” Short-Term EV Subsidies While Going in for Green Electricity, Advocacy for Electric Vehicle (EV) The Case for Temporary Subsidies to Serve Clear Policy Goals. Shah used the example of electric three-wheelers in India as perfectly placed to show how much adoption could be achieved through incentives. As of now, 22% of three-wheelers are electric thanks to this targeted subsidy.
The Electric Three-Wheelers
He described how the subsidies for electric three-wheelers have proved effective under the FAME-II scheme. This has already been reduced by 50% and is poised for a downslide in the next few years. “By the time we phase out the subsidies, we will be left only with 100% electric, three wheelers,” he reaffirmed and added that this could also be done for four-wheelers.
Vision Long-Term to Manufacturing
As per Shah,” India is opening up as a global manufacturing market,” and this, according to him, is what Mahindra envisages in the long run for sustainable growth.”Over the next ten years, the automotive industry will be the driver for economic growth in India and accounts for around 70% of this growth.”
An optimist, perhaps, Shah couldn’t help but remind them that time is running out. He warned that indeed India has to race to seize growth opportunities in renewable energy and manufacturing. “There is an enormous opportunity, but it has to happen now,” he cautioned. Otherwise, the country would miss the train and the accompanying progress.
Government Support and Policies
Shah indicated the role of the government in policies that would be the most important in India’s transition from raw energy sources to a renewable energy future. He added that effective regulations and supportive incentives are key to establishing a peculiarly conducive environment for sustainable business practice. The government will bear the burden to commit further to renewable energy in order to achieve these goals.
Bridging Sustainability into Business
Mahindra goes, by its commitment toward sustainability, beyond energy generation to bringing those other efforts in its internal operations. Therein, Shah asserted, the nexus doesn’t stop. “This company will produce world-class products leveraging lower production costs and greater ease in doing business,” he added.
Future Projects and Investments
In sync with his renewed commitment to renewable energy, Mahindra has revealed plans to invest heavily in hybrid renewable energy projects. The company is on course to develop a 150 MW hybrid project that combines solar and wind energies in Maharashtra. This rule further strengthens Mahindra’s commitment to the sustainability theme and will create large volumes of clean energy while minimising carbon emissions.
What Anish Shah describes for Mahindra & Mahindra is, in substance, a much grander vision for sustainability in India. After confounding subsidies for temporary EVs with a renewed focus on the energy-renewable sector, he believes that India can keep its environmental targets aligned with economic growth. As operationalisation ensues for Mahindra, it is expected to provide a model to other companies and countries aspiring to a greener future.
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