Status of National Electric Mobility Mission Plan (NEMMP) as of February 2022

During February 2022 session of Rajya Sabha, Member of Parliament Shri Syed Zafar Islam questioned Minister of Heavy Industries regarding the extent to which the National Electric Mobility Mission Plan (NEMMP) has been successful in upgrading technology, enhancing competitiveness and generating employment.

Further, he also questioned the government regarding the the kind of investments received in the National Electric Mobility Mission Plan and the manner in which the implementation of the Mission plan has benefited the country in the global trade ?

Shri Krishna Pal Gurjar, Minister of State for Heavy Industries replied that the National Electric Mobility Mission Plan (NEMMP) 2020 is a National Mission document providing the vision and the roadmap for the faster adoption of electric vehicles and their manufacturing in the country.

This plan was designed to enhance national fuel security, to provide affordable and environmentally friendly transportation and to enable the Indian automotive industry to achieve global manufacturing leadership.

As part of the National Electric Mobility Mission Plan (NEMMP) 2020, the Ministry of Heavy Industries formulated a Scheme namely Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME India) Scheme in 2015 to promote adoption of electric/ hybrid vehicles (xEVs) in India.

The Phase-1 of the FAME scheme was available up to 31st March, 2019 with budget outlay of Rs 895 Cr. This phase of FAME India Scheme had four focus areas i.e. technological development, demand generation, pilot project and charging infrastructure components.

In the 1st phase of the scheme, about 2.8 lakh xEVs were supported with total demand incentives of Rs. 359 Crore [Approx].In addition, 425 electric and hybrid buses, as sanctioned under first phase of the scheme, are deployed across various cities in the country with Government Incentive of about Rs. 280 Cr.

The Ministry of Heavy Industries had also sanctioned about 520 Electric Vehicle Charging Stations/ Infrastructure for Rs. 43 Crore (approx.) under Phase-I of FAME-India Scheme.

Projects worth about Rs. 158 Crores are sanctioned for the technology development projects like establishment of testing Infrastructure, setting up of ‘Centre of Excellence’ for Advanced Research in electrified transportation, Battery Engineering etc. to various organisations / institutions like Automotive Research Association of India (ARAI), IIT Madras, IIT Kanpur, Non Ferrous Material Technology Development Centre (NFTDC), Aligarh Muslim University (AMU) etc.

Based on outcome and experience gained during Phase-I of FAME India Scheme and after having consultations with all stakeholders, including Industry and Industry Associations, the Government notified Phase-II of FAME India Scheme for a period of 5 years commencing from 1st Apri1, 2019 with a total budgetary support of Rs. 10,000 crore.

This phase mainly focuses on supporting electrification of public & shared transportation, and aims to support through demand incentive 7090 eBuses, 5 lakh e-3Wheelers, 55000 e-4 Wheeler Passenger Cars and 10 lakh e-2 Wheelers.

In addition, creation of charging infrastructure is also supported under the Scheme. The Phase-II of FAME India Scheme is being implemented through following three components:

1. Demand Incentives
2. Establishment of network of Charging Stations
3. Administration of Scheme including Publicity, IEC (Information, Education &Communication) activities.

Under FAME-II scheme, the demand incentive for e-2W is increased toRs. 15,000/KWh from Rs. 10,000/KWh with an increase in cap from 20% to 40% of cost of vehicle to increase adoption of e-2W. Further, the phase-II of FAME-India Scheme is extended for a period of two years after 31st March, 2022.

The following initiatives have also been taken up by the Government of India forpromotion of electric vehicles in the country –

1. The Government on 12th May, 2021 approved a Production Linked Incentive (PLI) scheme for manufacturing of Advanced Chemistry Cell (ACC) in the country in order to bring down prices of battery in the country. Drop in battery price will result in cost reduction of electric vehicles.
2. GST on electric vehicles has been reduced from 12% to 5%; GST on chargers/ charging stations for electric vehicles has been reduced from 18% to 5%.
3. Ministry of Road Transport & Highways (MoRTH) announced that battery-operated vehicles will be given green license plates and be exempted from permit requirements.
4. MoRTH issued a notification advising states to waive road tax on EVs, which in turn will help reduce the initial cost of EVs.

Progress of Phase-II of FAME India Scheme

• Under Phase-II of FAME India Scheme, 2,31,257 Electric Vehicles have been supported till 01.02.2022 by way of Demand Incentive amounting to about Rs. 827 Cr.
• MHI has sanctioned 6315 e-buses to 65 cities/STUs/CTUs/ State Govt. entities for intracity and intercity operations across 26 states/UT under the Scheme.
• The Ministry has also sanctioned 2877 charging stations in 68 cities across 25 states/UTs under FAME India (Faster Adoption and Manufacturing of Hybrid & Electric Vehicles in India) Scheme Phase II.
• 50 Original Equipment Manufacturers (both start up and established manufacturers) have registered and revalidated their 106 electric vehicle models as on 28th January, 2022 under the scheme. See Details
• The sale of electric two wheelers vehicles has increased manifold during the current year as compared to the previous year.
• As far as employment generation is concerned, as per the Society of Indian Automobile Manufacturers (SIAM) report, the Auto industry generates employment of 13 persons for each truck, 6 persons for each car and four persons for each three wheelers and one person for each two-wheelers.

Champion OEM Incentive Scheme

A total of 115 companies had filed their application under the Production Linked Incentive (PLI) Scheme for Automobile and Auto Component Industry in India which was notified on 23 September 2021. The scheme was open for receiving applications till 23:59:59 hours IST on 9 January 2022.

Incentives are applicable under the scheme for determined sales of Advanced Automotive Technology (AAT) products (vehicles and components) manufactured in India from 1 April 2022 onwards for a period of 5 consecutive years.

The Government approved the Production Linked Incentive (PLI) Scheme for Automobile and Auto Component Industry in India for Enhancing India’s Manufacturing Capabilities for Advanced Automotive Products (AAT) with a budgetary outlay of ₹25,938 crore.

The Production Linked Incentive (PLI) Scheme for Automobile and Auto component industry proposes financial incentives to boost domestic manufacturing of Advanced Automotive Technology (AAT) products and attract investments in the automotive manufacturing value chain.

Its prime objectives include overcoming cost disabilities, creating economies of scale and building a robust supply chain in areas of AAT products. It will also generate employment. This scheme will facilitate the Automobile Industry to move up the value chain into higher value-added products.

MHI has processed the applications received under Champion OEM Incentive scheme and 20 applicants (along with their 12 subsidiaries) have been approved under this category of the scheme. Applications for Component Champion Incentive scheme are being processed separately. Following is the list of applications approved under Champion OEM Incentive scheme:

Champion OEM (Except 2W & 3W)

Champion OEM 2W & 3W

New Non-Automotive Investor (OEM)

The PLI Scheme for auto sector was open to existing automotive companies as well as new investors who are currently not in automobile or auto component manufacturing business. The scheme has two components viz Champion OEM Incentive Scheme and Component Champion Incentive Scheme.

The Champion OEM Incentive scheme is a ‘sales value linked’ scheme, applicable on Battery Electric Vehicles and Hydrogen Fuel Cell Vehicles of all segments. The Component Champion Incentive scheme is a ‘sales value linked’ scheme, applicable on Advanced Automotive Technology components of vehicles, Completely Knocked Down (CKD)/ Semi Knocked Down (SKD) kits, Vehicle aggregates of 2-Wheelers, 3-Wheelers, passenger vehicles, commercial vehicles and tractors, etc.

This PLI Scheme for automotive sector (₹25,938 crore) along with the already launched PLI scheme for Advanced Chemistry Cell (ACC) (₹18,100 crore) and Faster Adaption of Manufacturing of Electric Vehicles(FAME) (₹10,000 crore) will enable India to leapfrog from traditional fossil fuel based automobile transportation system to environmentally cleaner, sustainable, advanced and more efficient Electric Vehicles (EV) based system.

The PLI scheme for Automobile and Auto Component Industry has been a huge success in terms of the applications received from local as well as globally headquartered groups engaged in/ proposing to manufacture Advanced Automotive Technology vehicles/ products.

Apart from Indian business groups, approved applicants for Champion OEM Incentive scheme include groups from countries such as Republic of Korea, USA, Japan, France, Italy, UK and Netherlands.

The overwhelming response shows that Industry has reposed its faith in India’s stellar progress as a world class manufacturing destination which resonates strongly with Hon’ble Prime Minister’s clarion call of AtmaNirbharBharat – a self-reliant India.

DETAILS OF ELECTRIC VEHICLE MANUFACTURERS/ ORIGINAL EQUIPMENT MANUFACTURERS (OEMs) REGISTERED UNDER PHASE-II OF FAME INDIA SCHEME

During 2021, EV demand also got a fillip of late as fuel prices soared, making many buyers of conventional vehicles consider other options.