More new EV incentives from Indian government likely on the way [Update]

In addition to EV incentives, the Indian government is working on enhancing the nation’s charging infrastructure to speed up the switch to EVs. It is considering to make installing EV charging kiosks at all company-owned, company-operated fuel stations of state refiners.

Franchise-operated fuel stations also may need to compulsorily have a charging kiosk in the future. These measures are in line NITI Aayog’s suggestion, which we have mentioned towards the end of this story.

25 August 2020

The Indian government is likely to further push electric vehicles in India with more incentives, suggests a new report from NITI Aayog, the government body that conducts research and presents the ideas for boosting EV adoption in India, is onto something again.

The report says that NITI Aayog conducted a meeting of stakeholders for new plans to boost EV sales in India recently. The national government’s think tank is batting for electric vehicle financing under priority lending. It also wants a one-year extension of the timeline and subsidy under the FAME II scheme.

Further in its report, the business publication says that the industry seeks more subsidy under the FAME II scheme for one year to push demand. Streamlining of GST and import duties on cell, battery and other components is also the need of the hour. NITI Aayog and/or the industry don’t want the tariffs on EV charging to increase more than 15% of the average supply cost. FAME II should include captive charging stations and battery swapping, as per the report.

After studying the Delhi Electric Vehicle Policy, 2020, under the same national government scheme, NITI Aayog is contemplating a 50% incentive on purchasing electric vehicles and 50% incentive for the energy operators. It has requested the Ministry of Petroleum & Natural Gas to shortlist 1,000 fuel stations where it is possible to install charging stations. Of these 1,000 fuel stations, the ministry has already identified 382 places, of which 32 are Bharat Petroleum Corporation Limited fuel stations, 100 of Hindustan Petroleum Corporation and 250 of Indian Oil Corporation.

An updated FAME-II scheme or a FAME-III scheme could come out around early 2021, perhaps as part of the FY2022 Union Budget. The FY2021 Union Budget didn’t include any such announcement, and given the expected deceleration in EV adoption due to the COVID-19 outbreak, a renewed impetus to India’s EV industry is likely in 2021.