India’s government will soon release the guidelines for Rs 2,000 crore subsidy for EV charging stations for the PM E-DRIVE scheme.
Now, the Indian government’s final contours of subsidy are planned on a flashy Rs 2,000 crore program expected soon to ramp up EV charging stations for electric vehicles in the country. This is under the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) plan that was launched with an investment of Rs 10,900 crore in two years. The new guidelines, as per Haniff Qureshi, Additional Secretary at the Ministry of Heavy Industries & Investment Promotion, will possibly be out in a month.
Super Charging Pavement
The new PM E-DRIVE scheme has delineated double the amount proposed for charging infrastructure as compared to the FAME-2 scheme. The focus on charging stations is crucial as it addresses one of the significant barriers to EV adoption: range anxiety. Qureshi also clarified that the incentives will be distributed based on some factors, such as the number of EVs in a state and the amount of pre-existing traffic on highways. Those states that have their own EV policies and incentives will therefore be given priority in the funding.
Stakeholder Engagement
The Ministry itself has been in an active consultative process of formulating draft guidelines relative to the use of these incentives. Some of these drafts have been forwarded to central state governments to receive their input as well. There will be new committees in each state with Chief Secretaries as conveners to study the requirements for EV chargers in their state and submit to the Ministry proposals for approval.
Supporting Manufacturing
Besides the policy on charging infrastructure, the Ministry will also issue details about standards for a scheme that will be used to encourage the manufacture of electric cars in the country. This strategy’s purpose is to attract global electric vehicle firms and increase local production competencies. The government intends to heavily reduce the import duties for the manufacturers who are willing to construct production plants in the country.
Concerning financial problems
Qureshi also added that part of the incentives would also infuse upstream infrastructure development by electricity distribution companies, which are disadvantaged presently. This support is crucial for the capability to install and manage recharging stations in numerous areas.
Broader Goals of PM E-DRIVE
The PM E-DRIVE scheme plans to provide demand incentives for up to 2.5 lakh electric two-wheelers, 30 thousand electric three-wheelers, and 1400 electric buses. However, there is a notable omission in this scheme, which does not include electric cars in the incentives. Still, some industry experts consider that more attention should be paid to improving the charging network and offering tax incentives for purchasers to attract customers to make the shift to electrified automobiles.
Future Outlook
Due to high demand and the success of consumers taking up such schemes, the government, which is fully aware of sustainable transport solutions, is also considering the expansion of the PM E-DRIVE scheme beyond the current budgetary provisions. A panellist from FICCI, Sulajja Firodia Motwani, pointed out that existing incentives have already been depleted and pushed to extend them, as well as considering the hiking of budgets.
Therefore, the upcoming guidelines and initiatives under the PM E-DRIVE scheme hold an imperative role in determining the future perspective of electric mobility in India, especially when it is planning to witness a massive addition in the length of the electric vehicle network.
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