The Indian government has set an ambitious target of 100% electrification of public transport and 40% electrification of private vehicles by 2030. This is being done to reduce carbon emissions and promote clean energy. In recent years, the government has taken several steps to promote the adoption of electric vehicles and charging infrastructure.
Steps taken by the government
- The government has launched the Faster Adoption and Manufacturing of Electric Vehicles (FAME) India scheme to promote the adoption of electric vehicles in the country. Financial incentives are provided to buyers of EVs and charging infrastructure providers. The scheme has been extended several times. In 2019, FAME II was launched, which aimed to provide incentives for the deployment of 10 lakh EVs, including two-wheelers, three-wheelers, and four-wheelers, over three years. The scheme has led to the deployment of over 2.5 lakh electric vehicles and the establishment of over 2,800 charging stations across the country.
- The government has been promoting the adoption of electric buses in public transport. Under the National Electric Mobility Mission Plan (NEMMP), several cities have started operating electric buses in their public transport fleets. The introduction of electric buses has led to a reduction in pollution and has helped in promoting clean energy. Over 3,500 electric buses have been sanctioned for deployment under the scheme.
- The government has been focusing on setting up charging infrastructure to support the adoption of EVs. Several private players and state-run companies have also announced plans to set up charging stations. There are over 1,800 public charging stations for electric vehicles in India, with plans to establish over 10,000 charging stations in the next few years.
- In 2019, the government reduced the goods and services tax (GST) on electric vehicles from 12% to 5% to promote the adoption of EVs. The government has also provided income tax benefits for buyers of electric vehicles, with a tax deduction of up to Rs 1.5 lakh ($2,000) available on the interest paid on loans taken for the purchase of electric vehicles. The reduction in GST has made EVs more affordable for consumers. Furthermore, this has helped in boosting the sales of EVs
- The trucking industry is a major contributor to air pollution in India, with diesel-powered vehicles being the primary source of emissions. According to the Society of Indian Automobile Manufacturers, around 5 million commercial vehicles, including trucks and buses, are currently running on Indian roads, and most of them run on diesel.
According to a report by The Economic Times, the Indian government is planning to provide clean energy incentives to truckers to promote the adoption of electric vehicles in the transportation sector. The government is considering providing financial incentives, tax rebates, and other benefits to truckers who switch to electric vehicles. The government is also considering setting up CNG and LNG fueling stations along major highways to encourage the adoption of cleaner fuels. The move is expected to benefit not only the environment but also the trucking industry, as it will help reduce fuel costs and improve the efficiency of their operations.
These initiatives align with the Indian government’s target of reducing the country’s carbon emissions by 33-35% by 2030 and increasing the share of renewable energy in the country’s energy mix to 40% by 2030.
The steps taken by the government have started showing results. According to the Society of Manufacturers of Electric Vehicles, the sales of electric vehicles in India increased by 19% in the fiscal year 2020-21. The introduction of electric buses has helped in reducing pollution in cities, and the availability of charging infrastructure has boosted the confidence of consumers in EVs.
However, there are several challenges for the government. The high cost of EVs, the lack of charging infrastructure in certain areas, and the need for a robust supply chain are some of the challenges that need to be addressed. Furthermore, there has to be a robust awareness campaign to promote schemes in second-third-tier cities.
The Indian government’s push towards electrification of public transport and private vehicles is a step in the right direction towards reducing carbon emissions and promoting clean energy. The steps taken by the government to promote the adoption of EVs and charging infrastructure have started showing results. The government’s plans to provide clean energy incentives to truckers is a positive development towards achieving the target of 100% electrification of public transport. However, several challenges need to be addressed, and the government needs to work towards creating a conducive environment for the adoption of EVs.
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