The electric mobility sector doesn’t need additional incentives as existing subsidies available to them are good enough to give necessary kickstart to the sector, commerce and industry minister Piyush Goyal said after meeting the stakeholders.
The representatives of the sector met the minister for a discussion on the charging and battery swapping infra. “E-mobility sector is ready and set to fly. They don’t need additional incentives. In almost all sectors now, there are options available by which -emobility can be marketed. It’s a good economic case to move from ICE engine to EVs and hybrids,” the minister said. “Everybody was unanimous in the room across sectors that they don’t require subsidies.”
Currently, the government offers subsidies and incentives under the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE)’ scheme. Under the scheme, subsidies are given for purchase of electric two-wheelers (e-2W), e-three-wheelers (e-3W), e-ambulances, e-trucks, and other emerging categories of EVs. Apart from that, funding is provided for acquisition of e-buses, establishment of a network of charging stations and upgrading of the Ministry of Heavy Industries (MHI) testing facilities.
The government has made an outlay of Rs 10,900 crore for the scheme, effective October 1, 2024, and will remain in force until March 31, 2026. The Centre offers a production-linked incentive scheme for automobile and auto component industry (PLI-AAT) with an outlay of `25,938 crore for enhancing manufacturing capabilities for advanced automotive products including EVs and their components. The scheme incentivises various categories of EVs including e-2W, e-3W, e-4W, e-trucks & e-buses.
Goyal said the government is planning to make the setting of charging infra easier by allowing those who set up charging stations to self-monitor and self-regulate. “We want the RWAs and office complexes to have these charging stations. Nobody needs to invest in setting up these stations – auto and battery companies are happy to make the investments,” Goyal told the media. On whether the battery swapping model would be encouraged, Goyal said it is a business case that should be left to consumers and companies.
