Key Highlights
- Budget 2024 prioritizes EV growth through manufacturing and charging support
- 2023 sees substantial sales growth in EVs across categories
- PLI and FAME schemes highlight strategic steps for boosting the EV ecosystem
In a significant announcement on Thursday, the government declared its commitment to expanding and fortifying the electric vehicle ecosystem in the country. The primary focus will be on supporting both manufacturing facilities and charging infrastructure, signaling a crucial step towards a sustainable and green transportation future. Also Read | EV Charging Tips And Tricks: Seven Ways To Find EV Charging Stations Across India
Encouraging Electric Buses In Public Transport
Underlining the government’s dedication to eco-friendly public transport solutions, Finance Minister Nirmala Sitharaman emphasized the encouragement of greater electric bus adoption. This will be simplified through the implementation of a payment security mechanism, promoting a cleaner and greener alternative for public transportation networks.
Impressive Growth In EV Sales
The decision comes on the heels of an impressive surge in EV sales throughout 2023. According to data from the Federation of Automobile Dealers Associations (FADA), electric passenger vehicles saw a remarkable 114.71% increase, electric commercial vehicles surged by 114.16%, electric three-wheelers grew by 65.23%, and electric two-wheelers climbed by 36.09%.
Strategic Initiatives For EV Growth
To push the growth of the EV ecosystem, the government has already introduced several strategic initiatives. The PLI schemes for the automobile and auto component sectors, as well as the ACC battery storage, aim to boost domestic manufacturing and attract investments in relevant value chains. The FAME scheme further supports EV adoption.
Financial Allocations And Scheme Progress
The PLI scheme for the automobile and auto component sectors boasts a total outlay of Rs. 25,938 crore over five years. With investments reaching Rs. 11,958 crore by Q2 FY24, the scheme has already gained traction. The PLI scheme for ACC battery storage, with a seven-year outlay of Rs. 18,100 crore, is also making strides, with approved firms gearing up for substantial investments.
Also Read | Winter Care Tips For Electric Vehicles: How To Keep Your EV Healthy In Cold Weather
FAME II Scheme Impact
Under the second phase of the FAME scheme, the government has provided subsidies amounting to Rs. 5,228 crore for the sale of 11,53,079 EVs as of December 1, 2023. The FAME II plan, with a budget of Rs. 10,000 crore over five years, aims to make public transportation electric. This includes buses, three-wheelers, cars, and bikes, along with building charging stations.
Charging Stations And Future Plans
In a notable move, the Ministry of Heavy Industries revealed that 148 EV public charging stations have been commissioned under the FAME II scheme. Additionally, a significant allocation of Rs. 800 crores was sanctioned to oil giants Indian Oil, Bharat Petroleum, and Hindustan Petroleum in March 2023 to establish 7,432 public fast-charging stations nationwide.
Outlook For Electric Buses
MHI disclosed that state transport undertakings, city transport undertakings, and municipal corporations have placed orders for 3,390 electric buses under the FAME II scheme. Out of these, 3,037 units have already been deployed, with plans for an additional 3,472 electric buses currently in progress through Convergence Energy Services Ltd (CESL).
Verdict
As Finance Minister Nirmala Sitharaman stated while presenting the Interim Budget 2024, the government’s overarching goal is to create a robust and sustainable EV ecosystem by supporting manufacturing and charging infrastructure, laying the foundation for a cleaner, greener, and technologically advanced future in the transportation sector.
Also Read | FAME II In Focus: Government Considers Extending Scheme For EVs In 2024 Budget
