Electric Vehicles Current Affairs - 2019

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FAME-II Scheme and Energy Needs

The government had introduced the FAME II scheme to boost the adoption of electric and hybrid vehicles in the country. The Confederation of Indian Industry (CII) has made the following observations about the scheme:

  • It estimates that India can save 64% of anticipated road-based mobility-related energy demand and 37% of carbon emissions in 2030 by pursuing a shared, electric, and connected mobility future.
  • This reduction in energy demand would result in the reduction of 156 million tonnes of oil equivalent (Mtoe) in diesel and petrol consumption for that year and net saving of approximately $60 billion in 2030 at present oil prices.
  • Further, this would give impetus to India’s vision of reducing oil imports by 10% by 2022.
  • The electric vehicle penetration in India is currently at just 1%, FAME alone is not enough to reach the 30% electric vehicles target by 2030.
  • CII calls for boosting of the domestic manufacturing of vehicles, components and batteries needed to be boosted, along with skill development across the value chain, and the strategic sourcing of key raw material.
  • For transport to go truly green, there must be accompanied by a rising share of renewables along with environmentally sustainable batteries.

Transport sector in India continues to be the highest oil consuming sector and the use of diesel and petrol grew at 5.9% and 9.9% respectively in the last 10 years. India’s import dependency on oil has increased from 78.3 per cent of total consumption in 2014-15 to settling at a new high of 83.7% in the 10-month period of FY19. Hence FAME scheme has multiple benefits for both the economy and environment.

National Mission on Transformative Mobility and Battery Storage

The Union Cabinet headed by Prime Minister Narendra Modi has approved the setting up of National Mission on Transformative Mobility and Battery Storage and Niti Aayog CEO Amitabh Kant will be the head the steering committee.

Mandate of the Mission

  • The Mission will recommend and drive the strategies for transformative mobility and Phased Manufacturing Programmes for Electric Vehicles and its Components and Batteries.
  • The National Mission on Transformative Mobility and Battery Storage will determine the contours of Phased Manufacturing Program (PMP) which will be launched to localize production across the entire EV value chain.
  • The Mission will finalise the value addition that can be achieved with each phase of localisation with a clear Make in India strategy for the electric vehicle components as well as battery.
  • The Mission will coordinate with key stakeholders in Ministries/ Departments and the states to integrate various initiatives to transform mobility in India.

Impact of the Mission

  • The Mission will boost mobility solutions that will bring in significant benefits to the industry, economy and country.
  • These solutions proposed by the Mission will help improve air quality in cities along with reducing India’s oil import dependence and enhance the uptake of renewable energy and storage solutions.
  • The Mission will lay down the strategy and roadmap which will enable India to leverage upon its size and scale to develop a competitive domestic manufacturing ecosystem for electric mobility.
  • The Mission will promote ‘Ease of Living’ and enhance the quality of life of our citizens and also provide employment opportunities through ‘Make-in-India’ across a range of skillsets.

The other members of the steering committee headed by the Niti Aayog CEO Amitabh Kant are Secretaries from Ministry of Road Transport and Highways, Ministry of Power, Ministry of New and Renewable Energy, Department of Science and Technology, Department of Heavy Industry, Department for Promotion of Industry and Internal Trade, and Director General, Bureau of Industrial Standards.