NEAP = New Electric Automotive Policy
Context :
Skewed
norms act as roadblock for FAME 2 scheme : EV body /
Business Line – 07 Jan
Extract :
Ø “We urge the government to come up with
corrective measures that will help the industry achieve the envisaged target of
10 lakh E2Ws,” said Sohinder
Gill, Director General, SMEV [sohinder@gmail.com ]
Ø “The FAME 2 scheme had some good points and
laudable objectives but came with so many strings attached — most of them
introduced prematurely or unnecessarily — that led to the achievement of only 4 per
cent of the stated targets. The scheme
could not attract customers to shift from the polluting petrol bikes to E2Ws,
mainly because the preconditions and qualification criteria of FAME 2 made the bikes unaffordable to the mass market customer despite the
subsidy,” Gill said.
Ø To match the criteria of speed and range under FAME 2, the vehicle cost is going up, which is beyond the common man’s budget, he
said.
===================================================
Dear Shri Gadkariji,
I urge you to transform FAME to NEAP ( New Electric
Automotive Policy ) . When NEAP gets implemented, there will be a dramatic drop
in the selling prices of Electric Vehicles as shown in following table.
Our entire strategy should be to enable the
manufacturers to reduce their costs, so much that the EV start selling for less
than the prices of comparable Petrol / Diesel vehicles !
When that happens, there will be no need to offer any
subsidy !
Type of E Vehicle / Battery
Capacity (KWh) |
Target Number ( 3 YR ) |
Current EV Price (Rs ) for subsidy eligibility |
NEAP will
help bring down price to ( Rs L )- before subsidy |
Buses |
7,090 |
2 crore |
50 |
Cars ( Hybrid ) / 15 - 25 |
20,000 |
15 lakh |
- |
Cars ( Electric ) / 15 - 25 |
35,000 |
15 lakh |
7 |
3
Wheelers / 5
- 10 |
500,000 |
5 lakh |
3 |
2 Wheeler / 2
– 4 |
1,000,000 |
1.5 lakh |
1 |
Almost 2
years ago, in my following blog ( sent as e mail to Cabinet Ministers / MPs /
NITI Aayog etc ), I had listed what was WRONG with FAME 2 , - and how it should be modified to enable us to reach EV
targets :
Ø FAME
II > FAME III > FAME IV…………… [ 05 Mar 2019 ]
Extract :
What , if any , is the
shortcoming of just announced FAME II ?
# It
focuses solely on “ Incentivizing the Buyers “ through subsidies
# There are no “ Incentives “ for the vehicle manufacturers to ramp up
production or
commercialize “ cost
the matter of Lithium-ion batteries which constitute up to 40 % of EV
ex- factory price
# There are no “ dis-incentives “ for manufacture / sale / purchase of Petrol –
Diesel
vehicles
# Linking the subsidy amounts with battery size is not the right method . In
fact a
vehicle with a smaller size
speed – range – charging time etc ) as a vehicle with a bigger battery,
should be rewarded with higher subsidy !
Efficient use of input resources must be
encouraged
# There is no directive with regard to scrapping of old ( more than 10 years )
petrol /
diesel vehicles
What would you recommend next ?
FAME III ( Apr 22 - Mar
26 ) – 4 years
To avoid repetition, I am not reproducing my detailed / specific suggestions
listed in my blog / e-mail,
under
Suggestions in respect of :
[ A ] MANUFACTURERS
( A.1 ) Policy Instrument > Corporate Income Tax for Incentivizing the
manufacturers of Batteries
( A.2 ) Abolish Corporate Income Tax ( for 10 years ) for the entire E
Mobility Eco-System
( A.3 ) Incentivizing the E
Vehicle manufacturers
( A.4 ) Dis-incentivize manufacturers for production of Petrol / Diesel
vehicles
( A.5 ) Incentivizing
manufacturers to get into “ Recycling of Old Vehicles “
--------------------------------------------------------------------------------------------
[ B ]
BUYERS
( B.1 ) Incentivize for
purchase of E Vehicles – especially, leasing of buses
( B.2 ) Incentivize Retro-fitting of old Petrol / Diesel vehicles ( non-compliant
with BS VI norms )
( B.3 ) Incentivize to
switch-over to E Bikes
( B.4 ) Policy Instrument > Taxing all Vehicles based on their “ Harm
Quotient “ for environment
Dis-incentivize
purchase of Petrol / Diesel vehicles
--------------------------------------------------------------------------------------------
[ C ]
GOVERNMENT
( C.1 ) P0licy Instrument > Wet Leasing [ Thank You , Shri
Jaitleyji / 25 Dec 2018 ]
--------------------------------------------------------------------------------------------
[ D ] PASSENGERS OF PUBLIC TRANSPORT ( Non-Vehicle Owners )
---------------------------------------------------------------------------------------
[ E ]
SOLAR POWER for ELECTRIC VEHICLES
---------------------------------------------------------------------------------------
Dear Shri Nitin
Gadkariji,
For long, I have admired you for your VISION and OUT-OF-THE-BOX
/ BOLD thinking
Recently, Shri Saurabh Patel ( Energy Minister– Gujarat
) displayed similar bold thinking while announcing the NEW SOLAR ENERGY POLICY [
NSEP ], for
Gujarat
Read :
Congratulations
, Shri Saurabh Patelji- [ 31 Dec 2020 ]
Congratulations, Shri Vijaybhai
Rupaniji
Congratulations, Shri R K Singhji [ 19 Nov 2020 ]
A Tale of Two States
[ 28 Oct 2020 ]
I urge you
to “ revamp FAME to NEAP ( New Electric Automotive Policy ) , along
the lines suggested above
If you do,
I have no doubt Indian Auto Industry companies, will turn your dream into
reality
With regards,
Hemen Parekh
/
hcp@recruitGuru.com / 07
Jan 2021
===================================================
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