Govt working on policy to promote electric vehicles manufacturing


The government has asked auto companies to start manufacturing electric vehicles in India, and is also studying global markets to come up with a policy surrounding electric mobility and storage, senior officials said.

"We want electric vehicle manufacturers and also the people in renewable storage to set up their facility in India. We have a huge, ambitious target, and storage is the future of it," a senior government official told ET.

Power minister RK Singh had last month said that he had called a meeting of electric vehicle and storage system manufacturers and asked them to start investing in these sectors, where the "future" is headed.

"We are working to make India a manufacturing hub, and we would work on a policy which should facilitate that. We have started discussions with various stakeholders and we will try to bring in the right kind of policies at the right point of time," the official said.

The government has identified few key areas which will help push the e-mobility drive in India.

"Discussions have been done around how to galvanize domestic manufacturing in this field, how storage can be upgraded over a period so batteries are not imported, what policy changes in the electricity sector are required to push for charging stations in a big way," said another official who did not wish to be quoted.

While manufacturers are keen on the idea of making electric vehicles in India, the government has no plans on offering incentives for the same.

"There are no incentives that are being offered. If you look at the 1.3 billion people (in India), and the kind of vehicles we require, the kind of renewables that will come in, there are huge economies of scale... the market itself is very lucrative," one of the officials said.

The industry, however, is looking for the creation of demand for electric vehicles as a result of government's policies. While few auto companies are already manufacturing electric vehicles in India, the government is working to expedite the process, the official said. Leading national and international manufacturers of electric vehicles and storage system providers were part of the meeting called by the Power Minister.

Government think tank Niti Aayog will spearhead this move towards creating an ecosystem for electric vehicles in the country.

"Because there are a number of stakeholders, Niti Aayog will anchor this.. in a manner that roles and responsibilities of various ministries involved are defined and coordinated," one of the officials said.

Source- The Economic Times