India gives nod e-vehicle policy to curb carbon emission


Road transport presently accounts for 12% of India’s energy-related CO2 emissions

New Delhi: In a bid to curb carbon emissions, India on Friday approved an E-Vehicle policy to promote manufacturing in the country.

The policy aimed at promoting India as a manufacturing destination, so that e-vehicles with the latest technology can be manufactured in the country.

“The policy is designed to attract investments in the e-vehicle space by reputed global EV manufacturers,” said the official statement.

The Ministry said, “This will provide Indian consumers with access to the latest technology, boost the Make in India initiative, and strengthen the EV ecosystem by promoting healthy competition among EV players.

The policy will also help in reducing air pollution, particularly in cities, which will have a positive impact on health and the environment.

As per the policy details companies need a minimum investment of Rs 4150 Cr for establishing a manufacturing unit in the country. The timeline for manufacturing will be 3 years for setting up manufacturing facilities in India to start commercial production of e-vehicles and reach 50% domestic value addition (DVA) within 5 years at the maximum.

The customs duty of 15% as applicable to CKD units, would be applicable for 5 years and the cehicle of CIF value of $ 35,000 or above will be permissible, said the policy.

It said not more than 8,000 EVs per year would be permissible for import under this scheme.

Domestic value addition (DVA) during manufacturing: a localization level of 25% by the 3rd year and 50% by the 5th year will have to be achieved.

According to IEA,  Road transport presently accounts for 12% of India’s energy-related CO2 emissions and is a key contributor to urban air pollution.

As India seeks to meet the increasing demand for private mobility and the transport of goods, energy use and CO2 emissions from road transport could double by 2050.

In 2021, India’s Prime Minister announced the ambition to reach net zero carbon emissions by 2070.

As per  IEA’s Announced Pledges Scenario (APS), which brings the sector on track with the 2070 goal, ambitious policies could help reduce energy demand by 30% in 2050 relative to current policies, saving India 70 million tonnes of oil equivalent (80% of the sector’s current energy needs).

CO2 emissions peak in the mid-2030s and fall to about 20% below today’s level by 2050. Cumulatively, this could avoid up to 4 Gt CO2 between 2021 and 2050, compared to the current policy framework.


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