Govt to ramp up support for EV ecosystem
In a bid to bolster the EV ecosystem, Union Finance Minister Nirmala Sitharaman unveiled plans to ramp up support for manufacturing and charging infrastructure during her presentation of the Interim Budget 2024-25. Sitharaman highlighted the government’s commitment to promoting green growth, emphasising the need for greater adoption of EVs, particularly in public transport networks.
The Finance Minister outlined measures to encourage the proliferation of e-buses, stressing the importance of a payment security mechanism to facilitate their uptake. Additionally, she announced initiatives to make the blending of compressed biogas into compressed natural gas for transport and piped natural gas mandatory, underscoring the government’s push towards sustainable energy alternatives.
Furthermore, Sitharaman unveiled plans to launch the biomanufacturing and biofoundry scheme, aimed at providing eco-friendly alternatives for bio-degradable production processes.
The announcement comes on the heels of remarks made by Rajesh Kumar Singh, Secretary of the Department for Promotion of Industry and Internal Trade (DPIIT), who emphasised the pivotal role of EVs in India’s transition to a low-carbon economy. Singh highlighted the comprehensive vision for 2047, which includes a significant shift towards EVs across various segments, supported by tax incentives and Production Linked Incentive (PLI) schemes.
India’s EV market has been experiencing rapid growth, attracting attention from global players. The Economic Survey 2022-23 projects the market to reach 1 crore units in annual sales by 2030, creating five crore direct and indirect jobs. Despite the current total EV sales standing at approximately 10 lakh units in 2022, the government remains optimistic about the sector’s potential.
Incentivising domestic manufacturing of EVs has been a key focus for the Indian government, with fiscal incentives aimed at promoting local production. Tata Motors stands as a prominent player in the passenger EV segment within the Indian market.
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