E-Mobility+ Research_Policy Debrief : October 2020

POLICY DEBRIEF OCTOBER 2020

POLICY GOVERNMENT: CENTRAL SECI INVITES AGENCIES TO IMPLEMENT BUSINESS OPPORTUNITIES IN ELECTRIC MOBILITY SECTOR Solar Energy Corporation of India (SECI) has invited the Expression of Interest from Agencies for the identification and implementation of business opportunities in the electric / transformative mobility space. The last date to submit EOI is 07- December – 2020. Scope of work of successful agencies includes in demand creation, demand aggregation, setting up charging infrastructure, introduction of new and innovative products, market development, capacity building etc for three years. SECI intends to empanel agencies for the identification andimplementation of business opportunities in the electric / transformative mobility space in line with the national target of raising the share of Electric Vehicles (EVs) to 30 % of total no. of vehicles by 2030 along with associated infrastructure.

DHI RELEASES REVISED PMP UNDER FAME 2 The Department of Heavy Industry (DHI) recently released a revised notification regarding Phased Manufacturing Program (PMP) for xEV parts for eligibility under FAME 2.

According to the notification mentioned parts across vehicle segments need to be locally manufactured to be eligible for benefits under FAME 2. The document also mentions traction battery packs will need to be assembled locally whereas the option of importing cells and BMS ( Battery management system ) is provided. As compared to the last amendment this new rules provides 6 to 12 months for localisation of 2W and 3W traction motors, controllers and DC to DC converters.

GOVERNMENT EXTENDS DEADLINE FOR EV COMPONENTS LOCALISATION BY SIX MONTHS The department of heavy industries on Tuesday extended the deadline for the localisation of several components under its phased manufacturing programme (PMP) for electric vehicles (EV) from October 1 to April 1 next year, offering a breather to the industry. Compliance with the PMP is a condition for availing subsidies. To get demand incentives under the Rs. 10,000-crore second phase of the Faster Adoption and Manufacturing of Hybrid and Electric vehicles (FAME) scheme, companies must gradually increase the local sourcing of components for their EVs as stipulated in the PMP. The components for which the centre extended the date for mandated local procurement were traction motors, motor controllers, vehicle control units, on-board chargers, convertors and instrument panels. EV makers said localisation of EV components gets difficult as there wasn’t sufficient demand in the country for suppliers to invest in a manufacturing setup. The PMP was introduced by the government with the intention of allowing imports of key components until there was sufficient local demand for EVs and then gradually increasing the localisation requirements for availing demand incentives. The Phase-II of the FAME scheme has a financial outlay of Rs 10,000 crore for a three-year period starting April 2019. The scheme gives direct subsidies to buyers of electric vehicles. About 27,200 electric vehicles have been subsidised at an expense of Rs 95 crore by September 10 this year already.

OCTOBER 2020

DEBRIEF

VEHICLE SCRAPPAGE POLICY-SET TO COME OUT SOON

DHI INVITES PROPOSAL FOR SETTING UP EV CHARGING INFRASTRUCTURE

A Vehicle Scrappage policy is set to come out soon under which recycling clusters may be established near ports, such that India will emerge as the world's leading automobile manufacturing hub in five years as key raw material available from scrapping steel, aluminium, and plastic are bound to be recycled, bringing down automobile prices by “20-30 percent�. The proposed policy, once approved, will be applicable to all vehicles. Union Minister Nitin Gadkari has said that the new scrapping policy will be such that old cars, trucks and buses will be scrapped.

Vehicle scrappage policy has the potential of not just putting old and polluting vehicles off Indian roads but also injecting life into the automobile industry due to fresh demand. With resale value of vehicles beyond 15 years being extremely low, these vehicles can be sent to scrap yards with some sort of monetary compensation to owners which could ensure two benefits - incentive for owners to get rid of such vehicles and putting these polluting vehicles out to help the environment.

The Department of Heavy Industry (DHI) has recently Invited proposals for availing incentives under FAME II for the deployment of 1544 No.s of EV Charging Infrastructure on Highways/Expressways.

Last date of Submission of Proposal is on 07-122020. Each charging station must at least host one CCS II or CHAdeMO of minimum 50 KW EVSE AND one DC 001 of 15 KW such that one CCS II and CHAdeMO EVSE can be found in an interval of 4 consecutive charging stations.

OCTOBER 2020

POLICY GOVERNMENT: STATE KARNATAKA PROPOSES 20% SUBSIDY ON INSTALLATION OF EV CHARGING STATIONS The state's government has proposed a subsidy of 20 per cent or ₹10 lakh, whichever is higher, to individuals interested in setting up public EV charging stations. Setting up an EV charging station costs anywhere between ₹30 lakh to ₹40 lakh. There hasn't been an official announcement in this regard yet, considering this is still a proposal. However, the report quotes an official as describing the subsidy as a means to encourage people to invest in installation of EV charging stations. The EV Policy of Karnataka intends to achieve 100% electric mobility in certain vehicle segments by 2030. At present, Bengaluru has 70 EV charging stations with 126 chargers out of which most of them are installed in the public areas.

More 150 charging stations will be installed as per the government-sanctioned orders. The state has proposed to make at least one charging station available in a grid of 3kmX3km and one station at every 25 km on both sides of highways/roads.

DELHI GOVERNMENT UNDER IT RECENT EV POLICY EXEMPTS ROAD TAX ON BATTERYOPERATED VEHICLES Delhi transport minister Kailash Gahlot said that the government in the national capital has exempted road tax on battery-operated vehicles under its new Electric Vehicle Policy. The Transport department, in its notification, stated that the Lieutenant Governor of the National Capital Territory of Delhi exempted the tax levied upon all battery electric vehicles with immediate effect under the Delhi Motor Vehicle Taxation Act, 1962. Kailash Gahlot shared this news with a tweet. In August 2020, the Delhi government introduced the new Delhi Electric Vehicle Policy, 2020, with the aim to increase the adoption of EVs in the national capital region. The new policy proposed tax waivers, charging and swapping infrastructure establishment, battery cycling ecosystem, and creating a non-lapsable State EV Fund. The government also offered financial incentives for EV buyers in the region. Under the policy, e-rickshaws, electric two-wheelers, and goods carriers will receive incentives of ₹30,000.

GUJARAT ANNOUNCES SUBSIDIES FOR PROMOTION OF EV The Gujarat government has recently announced a scheme for the promotion of electric two and threewheelers in the state.The state government will be offering subsidies to EV in the state. School (class IX and above) and college students who buy electric two-wheelers will get a government subsidy of INR12,000, while rickshaw drivers and self-employed persons who buy electric threewheelers will get a subsidy of INR 48,000 per vehicle. The government has set a target of having 10,000 electric twowheelers and 5,000 electric three-wheelers on the roads in the current fiscal year. The government has also announced that 10 public charging stations will be set up in Ahmedabad, Vadodara, Surat and Rajkot to facilitate charging of e-vehicles. And a sum of INR 50 lakh has been earmarked for setting up these charging stations. The event also marked the E- signing of 10 MoUs between IITs, IIMs, BISAG, Anand Agricultural University and GSRTC, Gujarat Gas, GUJCOST, GLPC, the chief town planner, GSBTM and Knowledge Consortium of Gujarat.

TESLA INVITED BY MAHARASHTRA GOVERNMENT TO INVEST IN THE STATE The Maharashtra government which, like a number of other state governments, is looking to enhance its focus on the electric vehicle (EV) eco-system, has invited Tesla to invest in the state. Maharashtra Tourism Minister Aaditya Thackeray and the state industries minister Subhash Desai held a video call with the Tesla team recently to discuss potential investment in the state. The same was informed by Aaditya Thackeray through a tweet. He also emphasized on the fact that electric mobility is the way forward and the state government is firmly committed to policy building and changes for sustainable development so that EVs can become mainstream. Elon Musk had earlier this month said on Twitter that the company was ready to enter the Indian market next year. Currently in Asia, Tesla has only one Gigafactory, located in Shanghai, China.

OCTOBER 2020

DEBRIEF

EXPERT TALK ON EV POLICY DEBRIEF: STATE & CENTRAL MONTHLY HIGHLIGHTS DATE 10TH NOV, 2020 TIME: 3.30 TO 5PM EMobility+ Policy Debrief is a dedicated business leadership & dedicated segment of ExpertTalk focussed on latest policy drafts, amendments & announcements by the Central & State Government in EV, Auto & Smart Mobility Sector.

In this series we bring to you the latest news, analysis on some of the most important sector announcements by bringing in a pool of experts from both the Private & Public sector to keep you informed and stay updated with expert insights.

In this ExpertTalk series our Experts will take a deeper look at these policies and translate them into actual Corporate Strategy and Roadmap for Businesses, this wisdom certainly comes across as a handy resource for future Business Planning. In this series you will get to interact One to One with Policy Makers, Advisors, Industry Experts and All Other Stakeholders who have been instrumental in Policy Making.

Key Discussion Points: Policy Debrief & Business Updates EV-focused Maharashtra invites Tesla to invest in state Delhi Government Under It Recent EV Policy Exempts Road Tax On Battery-Operated Vehicles Karnataka Proposes 20% Subsidy On Installation Of EV Charging Stations DHI Releases Revised PMP Under FAME 2 Government Extends Deadline For EV Components Localisation By Six Months DHI Invites Proposal For Setting Up EV Charging Infrastructure Vehicle Scrappage Policy-Set to Come Out Soon Registration Link: https://events.firstviewgroup.com/EVPolicyDebriefStateCentralMonthlyHighlights#/?lang=e

OCTOBER 2020