GS Paper 3
Topics Covered: Infrastructure- energy.
Context:
Recently, NITI Aayog and Rocky Mountain Institute (RMI) and RMI India have launched the Shoonya Campaign. RMI is an independent nonprofit organization founded in 1982.
About the Campaign:
- It is an initiative to promote zero-pollution delivery vehicles by working with consumers and industry.
- The campaign will promote the adoption of electric vehicles (EVs) in the urban deliveries segment and create consumer awareness about the health, environmental and economic benefits of electric vehicles.
- As part of the campaign, a corporate branding and certification programme is being launched to recognise and promote the industry’s efforts towards transitioning to EVs for final-mile deliveries.
Government of India Initiatives to give a boost EV Sector in India:
- The government aims to see 6 million electric and hybrid vehicles on the roads by 2020 under the National Electric Mobility Mission Plan 2020.
- Faster Adoption and Manufacturing of Electric Vehicles in India (FAME India Scheme) for improving electric mobility in India.
- Implementation of smart cities would also boost the growth of electric vehicles.
Challenges ahead:
- The Indian electric vehicle (EV) market currently has one of the lowest penetration rates in the world.
- Capital costs are high and the payoff is uncertain.
- The Indian EV industry has been hit hard due to rupee’s dramatic depreciation in recent months.
- Local production of inputs for EVs is at just about 35% of total input production.
- The production will be severely affected in terms of production costs.
- The Faster Adoption and Manufacturing of (Hybrid) and Electric Vehicles (Fame) framework has been extended repeatedly.
- An uncertain policy environment and the lack of supporting infrastructure are major roadblocks.
- India does not have any known reserves of lithium and cobalt, which makes it dependent on imports of lithium-ion batteries from Japan and China.
Need of the hour:
- For EVs to contribute effectively, we need commensurate efforts in developing an entire ecosystem.
- Need to shift the focus from subsidizing vehicles to subsidizing batteries because batteries make up 50% of EV costs.
- Increasing focus on incentivizing electric two-wheelers because two-wheelers account for 76% of the vehicles in the country and consume most of the fuel.
- A wide network of charging stations is imminent for attracting investment.
- Work places in tech parks, Public bus depots, and Multiplexes are the potential places where charging points could be installed. In Bangalore, some malls have charging points in parking lots.
- Corporates could invest in charging stations as Corporate Social Responsibility compliances.
- Acquiring lithium fields in Bolivia, Australia, and Chile could become as important as buying oil fields as India needs raw material to make batteries for electric vehicles.
Sources: PIB.