Context:- With severe air pollution in Delhi, the Supreme Court (SC) has suggested that the National Electric Mobility Mission Plan (NEMMP) 2020 must be revisited and updated to accelerate India’s transition towards electric mobility.
About National Electric Mobility Mission Plan (NEMMP)
Primary Objectives and Goals:-
Core Aim: To achieve national fuel and energy security.
Secondary Aims: Mitigate the environmental impact of conventional vehicles and foster domestic manufacturing capabilities.
Strategy: Promote hybrid and electric vehicles (EVs) as the preferred choice to reduce liquid fuel consumption in the auto sector.
- Historical Target: The plan initially targeted 6-7 million sales of hybrid and electric vehicles by 2020.
AIM:
Demand Side: Providing incentives to facilitate the acquisition of hybrid/electric vehicles.
- Research & Development: Promoting R&D in critical areas like battery technology, power electronics, motors, and battery management systems.
- Infrastructure: Actively promoting the development of charging infrastructure.
- Supply Side: Offering incentives to manufacturers.
- Retro-fitment: Encouraging the conversion of on-road vehicles using hybrid kits.
- Implementation and Supporting Measures
- FAME India Scheme: The Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME) scheme was launched under NEMMP to promote the manufacturing of electric/hybrid vehicle technology.
Fiscal Incentives:
- GST on electric vehicles reduced from 28% to 5 %.
- Tax deductions were announced for interest paid on loans taken to purchase EVs.
- Infrastructure Support: The sale of electricity has been classified as a ‘Service’ for EV charging, incentivizing investment in charging infrastructure.
- Regulatory Easing: The Ministry of Road Transport & Highways exempted battery-operated vehicles from permit requirements.
