Stable Policy Framework A Must-Have for EV Adoption: SMEV

Stable Policy Framework A Must-Have for EV Adoption
Stable Policy Framework A Must-Have for EV Adoption: SMEV

Electric vehicles haven’t quite taken off in the country, probably on desired lines despite the buzz generated around it by various industry stakeholders over the last couple of years. And as the government gears up for the Union Budget 2019-2020, stakeholders connected to electric vehicles would be looking for a stable policy roadmap so that the EV push can be accelerated across the country.

The Society of Manufacturers of Electric Vehicles (SMEV) – the apex body that represents all EV stakeholders in India – is optimistic that the government will come up with a stable policy roadmap for accelerating the EV push across the country.

Sohinder Gill, Director General, Society of Manufacturers of Electric Vehicles (SMEV), said the need of the hour is for a long-term policy to facilitate adoption of EVs, backed by substantial customer incentives and massive awareness campaign, if the country has to achieve its target of 30% EVs by 2030.

The SMEV expects the budget to allocate at least 20,000 crores over the next 2 years and target at least 1 million electric vehicles in top 10 most polluted cities.

There has been a fair amount of delay over the announcement of the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles FAME 2 scheme, something the SMEV DG said must be addressed at the earliest. “The FAME 2 scheme must be announced with a six-year plan backed by time-bound implementation.”

Besides the Fame 2 scheme, the SMEV feels that a notional green cess should be imposed on all ICE vehicles. Gill said such a move will help create a corpus rather than dipping into the government exchequer.

He said it is critical that more EVs are plying on the road as that would lead to creation of a supply chain in the country for critical powertrain components. Until such a supply chain is in place, current import duty concessions must continue so that EVs do not end up becoming costlier, he noted.

The SMEV believes that EVs will have a big role to play in the government’s Smart City project. “The government should give more thrust on e-mobility under the smart city project which is currently missing,” Gill observed.

The SMEV DG said the government must look to encourage public private partnership (PPP) model in EV sharing services such as bike and car sharing through which the required EV infrastructure support can be addressed.

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