National Electric Mobility Mission Plan
National Electric Mobility Mission Plan
The National Electric Mobility Mission Plan (NEMMP) was launched by the Government of India in the year 2013. The plan was for making India’s passenger mobility merged with the electric consumption through which the nation’s energy need could be reduced by 64 per cent and reduction in carbon emissions by 37 per cent by the year 2030. With the introduction of the Electric Mobility Plan combined with the government’s economic and regulatory incentives for this industry saves Rs.62,000 Crore worth spent for crude oil. The Government implemented this Plan under phase two of the FAME (Faster Adoption & Manufacturing go Hybrid and Electric Vehicles) India Scheme and the Department of Heavy Industries.
Objectives of the NEMMP
The National Electric Mobility Mission Plan is launched with the following objectives fostering India to emerge as a leader in the electric Two Wheeler and Four Wheeler market in the world by 2030:
- To encourage electric and hybrid vehicles by ensuring the national fuel guarantee in the country.
- To boost consistent, affordable and competent Electric Vehicles that meet customer satisfaction.
- To organize and build ethnic manufacturing capabilities, essential infrastructure, consumer consciousness and technology.
- Improvement of the adverse impact of vehicles on the environment.
Composition of the NEMMP
The NEMMP comprises of the empowered bodies at the higher level in the form of:
- National Council for Electric Mobility (NCEM)
- National Board for Electric Mobility (NBEM)
These two bodies collaborate to form an accelerating system for expediting decision making and ensure a good relationship with the stakeholders.
National Electric Mobility Mission is a multipart scheme that uses different strategy-controls and components as follows:
- Incentives are facilitated for the procurement of hybrid electric vehicles
- Promotion of R&D technology that encounters a greater efficiency in
- Use of Lithium-Battery Technology.
- Integrated System with Power Electronics for thermal control and better performance.
- Cost-effective Electric Motors.
- Greater System Integration for developing efficient xEV powertrains.
- Provision of state-of-art Battery Management System.
- Enhanced testing infrastructure with room for updating.
- Promoting Charging Infrastructure for fast and rapid charging facilities.
- The sale of electricity is permitted as a ‘Service’ for the charging electric vehicles that are set to deliver enormous incentives in order to draw investments into charging infrastructure.
- Supply Side incentives that link demand incentive and firm commitments for manufacturing Electric Vehicles by encouraging retro-fitment of on-road vehicles and its hybrid kit.
- The NEMMP induces in the preparation of the electric vehicles that are low-speed scooters.
- In 2012-13, around 42,000 electric vehicles and close to 20,000 hybrid vehicles were sold in India, while the target to achieve 6-7 million sales of hybrid and electric vehicles by the year 2020.
Features of NEMMP
NEMMP expects to permit hybrid and electric vehicles to turn out to be the first choice for the purchasers. These vehicles can switch the conventional vehicles and thus lessen the liquid fuel utilization in the country from the automobile sector.
The Government has taken the below-mentioned steps for faster adoption of Electric Vehicles:
- A tax reduction was the prime factor that the government has announced for the purchase of electric vehicle in India.
- The GST rates on electric vehicles were slashed from the earlier 28% with cess to 12% with no cess.
- A sum of 75 Crores was sanctioned for the initial expenditure cost for the plan.
- This scheme is anticipated to provide a major impetus towards early adoption of electric and hybrid technologies.
- The Government envisions to enhance the market development of Electric Vehicles by 2020 by implementing the following structures:
- Demand incentive requirements for different vehicle segments varies significantly.
- Larger investments for setting up Domestic production and
- In-house technology development improves this industry reach self-sufficient economies of scale.
- The Government is still pushing this sector in the market, and that can be extended for not only in the 2 Wheeler manufacturing but also 3 Wheeler, 4 Wheeler, LCVs and buses.
- The Government plans to extend financial support to affordable
- The financial support or the incentive will be distributed through an electronic structure or portal.
- With the manufacturer of the vehicle reducing its selling price to the consumer, the same amount will be refunded to the manufacturer by the Government.
- Ministry of Road Transport Highways announced statement regarding the exclusion of permit in case of battery-operated vehicles for the Charging Infrastructure.
- Department of Heavy Industry reported the Phase-II of the Scheme with the authorization of Cabinet with an amount of 10,000 Crore for a period of 3 years starting from 1st April 2019.
EESL’s EV programme for constructing an aiding ecosystem
By launching a significant existence for EVs, their affordability, and supporting charging infrastructure, Energy Efficiency Services Limited (EESL) is largely employed to generate an industrial and consumer switch to EVs. This model stipulates a motivation for the following communities and in turn empowers the Indian EV manufacturers to come out as a major global player.
- Indian vehicle manufacturers
- Charging infrastructure companies
- Fleet operators
- Service providers
- Local manufacturing facilities
- Growth in technical competencies for the long-term growth of the EV industry in India
More details on EESL can be assessed from the below link:EV_brochure_trifold_emailer
- EESLs are the combination of the institutional demand with the capital for e-car investment.
- Original Equipment Manufacturers (OEMs) are selected after bidding for the vehicles and charging points, OEMs provide comprehensive extended on-site warranty and a five-year Annual Maintenance Contract.
- Service provider enables governmental institutions to have access to end-to-end fleet management services, EESL will engage a service provider. These services include insurance, registrations, permits, and other regulatory documentation.
- Public Sector Undertakings
Upon formal agreement with EESL, PSUs provide parking space for e-cars and space for setting up charging infrastructure.
Future Plan of NEMMP
The Department of Heavy Industries has allocated a large sum of amount for the implementation and smooth functioning of the plan and to achieve the following targets:
- The plan aims at introducing trending technology and enhance the sales of hybrid and electric vehicles to reach the yearly sales target of 6-7 million approximately.
- The plan is projected to save 9500 Million litres of crude oil which is equal to the amount of Rs.62,000 Crores.
Also, various initiatives are taken by the Government to promote electric mobility in the country. Few are provided below:
- The rates of GST on Electric Vehicles are lowered with 12% (without cess) whereas the GST for conventional vehicles is 28% + Cess.
- The Ministry of Power has allowed the sale of electricity as ‘service’ for charging of electric vehicles which will attract investments to the charging infrastructure.
- The Ministry of Road Transport Highways has exempted the permit fee for battery-operated vehicles.
- Issue of Expression of Interest (EoI) for the deployment of 5000 electric buses by State Transport Departments/Undertakings etc.
- It has been observed that a sufficient number of charging infrastructure is required to achieve the outcome of the plan which is addressed presently in Phase-II of FAME Scheme
For more details:
Energy Efficiency Services Limited (EESL),
- 5th & 6th Floor,
- CORE-III, SCOPE Complex,
- 7, Lodhi Road, New Delhi-110003.
- E-mail: [email protected]