Delhi Govern­ment is soon likely to (orne out pol­icy to in­cen­tivise peo­ple will­ing to shift from fos­sil fuels as an en­ergy source to elec­tric en­ergy, in­formed Mr. Kailash Gahlot, Cabi­net Min­is­ter, in charge of Trans­port, in the Delhi Govern­ment.

Assocham Bulletin - - ENERGY -

The trans­port min­is­ter added that it is im­per­a­tive to bring down cost of elec­tric ve­hi­cles to make it af­ford­able and vi­able for pub­lic trans­port, while ad­dress­ing "the ASSOCHAM In­ter­na­tional Con­fer­ence on 'Elec­tric Ve­hi­cles: Fu­ture Roadmap for In­dia', held on De­cem­ber 19, 2017.

Seek­ing guid­ance to ex­pe­dite process of procur­ing elec­tric buses in Delhi, Mr. Gahlot urged the elec­tric ve­hi­cle man­u­fac­tur­ers to come for­ward and ad­vise on how to move . ahead in this re­gard. "Delhi govern­ment is very keen and more than will­ing to in­duct elec­tric buses, we are open to ev­ery idea, sug­ges­tion which can help us place or­ders as fast as pos­si­ble, we are ab­so­lutely ready."

He, how­ever, said that it is a C'hal­lenge for Delhi Govern­ment to bring in elec­tric buses as the en­tire in­fras­truc­ture and ecosys­tem needs to be cre­ated. As such he ad­vised the in­dus­try lead­ers to pro­vide for com­plete so­lu­tion in­stead of just fo­cus­ing on sell­ing the elec­tric ve­hi­cles.

Mr. Gahlot fur­ther said that while Delhi Govern­ment has al­ready given com­mit­ment to in­duct 100 elec­tric buses, it is

will­ing to in­crease the fleet to 1,000 as soon as pos­si­ble.

He also sought clar­ity on Union Govern­ment's FAME Scheme (Faster Adop­tion and Manufacturing of Hy­brid and Elec­tric Ve­hi­cles), a pro­gram of in­cen­tives of­fered to EVbuy­ers to help im­prove adop­tion and sales. "Even un­der the FAME scheme, there are lot of gaps and there is lot of am­bi­gu­ity, like for in­stance there is no clar­ity amid man­u­fac­tur­ers when asked whether or not they would qual­ify in the kilo me­tre scheme," said the Delhi Trans­port Min­is­ter. "More clar­ity in this re­gard will help us move swiftly," he added.

He fur­ther high­lighted that the shift to elec­tric and hy­brid buses is slow in In­dia, mainly due to cost fac­tor. The av­er­age cost of hy­brid or elec­tric buses is 3-4 times higher than diesel buses. Fur­ther, with the de­crease in the cost of diesel, there is not much in­cen­tive for the op­er­a­tors to shift to hy­brid or elec­tric buses. "Cost of elec­tric buses at Rs 2.75crore is way too high and un­sus­tain­able, I would re­quest the cen­tral govern­ment for more sub­sidy along with fi­nan­cial and tech­ni­cal help", he added. Fur­ther, there should be sub­sidy on power to be consumed by elec­tric ve­hi­cles.

In his ad­dress at the ASSOCHAM con­fer­ence, NIT! Aayog CEO, Mr. Amitabh Kant im­pressed upon the need to bring in bet­ter tech­nolo­gies like elec­tric ve­hi­cles in In­dia's au­to­mo­bile and auto com­po­nent sec­tor to en­sure bet­ter qual­ity of life for its cit­i­zens.

High­light­ing the im­por­tance of the sec­tor, Mr. Kant said that au­to­mo­bile and auto com­po­nent sec­tor con­trib­utes about 7.2 per cent to In­dia's over­all Gross Do­mes­tic Prod­uct (GDP), cre­ates over 30 mil­lion jobs and al­most 25 per cent of its to­tal manufacturing is ex­ported abroad.

"So what­ever we do, we must un­der­stand that the role of au­to­mo­bile and auto com­po­nent sec­tor must con­tinue to grow and ex­pand, to be a job cre­ator, to be a GDP con­trib­u­tor and to playa ma­jor role in ex­ports," added the NITI Aayog CEO.

He said that in the elec­tric ve­hic­u­lar seg­ment, ob­jec­tive is to ac­cel­er­ate the pace while en­sur­ing that In­dia main­tains its size and scale, its GDP share, em­ploy­ment share and that is pos­si­ble only if we are able to pro­duce to size and scale.

"We will con­tinue to sup­port this move­ment in a very big way, we will con­tinue to sup­port all OEM and In­dian man­u­fac­tur­ers, we would like ma­jor dis­rup­tions to take place in In­dia, we would like in­ter­op­er­a­ble charg­ing sys­tems and we would like to sup­port EVs by a vast range of ini­tia­tives like lower road taxes and push them and the govern­ment will act as a cat­a­lyst to sup­port this en­tire move­ment so that au­to­mo­bile and auto com­po­nent sec­tor con­tin­ues to playa very ma­jor and sig­nif­i­cant role in In­dia's GDP, job cre­ation as well as ex­ports," said Mr. Kant.

"As a pol­icy frame­work this cuts across sev­eral de­part­ments - Min­istry of Road Trans­port, Power, Heavy In­dus­tries but we in NIT! Aayog will con­tinue to co­or­di­nate and drive this move­ment," he said fur­ther.

"The change is in­evitable but we should do it in a man­ner where we do not dis­turb com­bus­tion ve­hi­cle manufacturing, we should do to size and scale which will en­able In­dia to be­come the cen­tre for manufacturing, bat­tery manufacturing for us­age as well as for ex­ports," he added. "It is pos­si­ble to do this in In­dia be­cause our per-capita us­age of cars is still very low."

(L-R) Mr. D. S. Rawat, Sec­re­tary Gen­eral, ASSOCHAM, Mr. R. S. Kalsi, Chair­man, ASSOCHAM Na­tional Coun­cil on Auto, Mr. San­deep Ja­jo­dia, Pres­i­dent, ASSOCHAM, Mr. Ashim Sharma, Part­ner, No­mura Re­search, Mr. Kailash Gahlot, Hon'ble Min­is­ter of Trans­port,...

Mr. San­deep Ja­jo­dia, Pres­i­dent, ASSOCHAM in con­ver­sa­tion with Mr. Kailash Gahlot, Min­is­ter for Trans­port, Govern­ment of Delhi.

Mr. San­deep Ja­jo­dia, Pres­i­dent, ASSOCHAM wel­com­ing Mr. Amitabh Kant, lAS, Chief Ex­ec­u­tive Of­fi­cer, Niti Aayog.

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