Niti Aayog hints government incentives for electric vehicle infrastructure to encourage electromobility

According to Niti Aayog, the think-tank of the government, the ministry of heavy industry may soon announce incentives for electric vehicle infrastructure to encourage electromobility. The Development Monitoring and Evaluation Office (DMEO), which was set up under the NITI Aayog to keep a check on the Centre’s flagship programmes announced this recently.

Speaking during ETAuto Tech Summit, on Friday, June 28, Anil Srivastava, director general - DMEO & principal adviser, said that electric vehicles remain the focus area of the government and it may soon announce incentives to support the infrastructure.

“When we look into the battery storage and transformation which is going to take place, India’s electric vehicle market will be worth US$300 billion in 2030, as per the projections by leading consultants and experts,” said Srivastava. 

The industry, according to him has to invest in building a battery capacity of 50-60 GWh by 2025 to meet the future electromobility plans.  Srivastava also asserted that the reliance on lithium is not necessary and one needs to explore other material options for battery technology. The think tank estimates an investment of about US$40 billion on battery infrastructure in next three years. Aluminium as a metal has immense possibility of use in the EV battery infrastructure and such an investment will definitely push demand for the metal in India.

Srivastava mentioned that India would account for two-fifths of the global battery demand by 2027-28. He cited example of NTPC, which is working on developing charging infrastructure for EVs and hinted at the provision of government incentives.

“NTPC is going big on infrastructure for charging stations and what kind of incentives should be there, and they will be pronounced shortly by the Department of Heavy Industries,” he said.

He emphasised on the informal transportation needs in India and urged the industry to invest in electrifying two-wheeler and three-wheelers in order to electrify the complete transportation fleet in India. According to him, the country offers huge size and space and automakers need to have a strong base for electric vehicles.

He concluded that India needs localisation of R&D as well as innovation for a successful transition to electric mobility.

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