After over a century of petroleum dominance, the transportation sector is going through a radical transformation. New energy options comprising alternative fuel and electrification is at the forefront of this transformation. While the technologies and fuel that will move people and goods in the future remain uncertain, transportation systems will be more integrated with renewable energy, smart electric grids, smart buildings, and information ecosystems, allowing for greater opportunities to leverage these interconnections.
The Confederation of Indian Industry’s (CII) Committee on Future Mobility and Battery formed four sub-groups to look minutely at battery storage, connected and shared mobility, charging infrastructure and the related issues in power distribution. It has come out with a report combining the recommendations of these sub-groups, setting the agenda for government departments both in the Union and state governments.
The report titled A Roadmap for Future Mobility & Battery Storage is divided into four chapters; discusses the issues across future mobility and presents key recommendations for the government to consider for making the existing ecosystem even more conducive for enhancing sustainable investment and growth.
According to Mr. Vipin Sondhi, Chairman, CII National Committee on Future Mobility & Battery Storage, and former managing director & CEO, Ashok Leyland and JCB India “The automobile industry is rapidly transforming towards sustainable solutions for new-age mobility. Whether it is newer technologies for electric vehicles or battery storage systems or for providing the service of aggregating public transport options, continued government - both Central and State - leadership on policy, progressive regulations, and appropriate incentives, like the production liked incentive (PLI) scheme can help in further developing the ecosystem for future mobility.”
While the CII report welcomes the Union government’s announcements on PLI scheme for advanced chemistry cell battery storage and the notification on charging infrastructure, it calls for enhancing government support and fiscal incentives since the initial 50 GWh capacity under PLI may not be adequate for a large market size.
The report also calls for doing away with ceiling on service fee for charging of electric vehicles. The Union ministry of power in its guidelines on setting up public charging infrastructure has stipulated that state discoms fix a ceiling on service fee which a Charge Point Operator can levy on the end user. CII believes that at this stage of technology, costs and utilization levels are uncertain so any cap worked basis a particular technology or utilisation level will disincentivise private investment. Besides, it will not encourage an operator to invest in latest and future looking technology, thus affecting EV adoption.
The report has made a range of recommendations covering the four segments of future mobility. Some of the suggestions include need for India to build a secure resource base of raw material supply to scale up battery manufacturing capacity and a detailed roadmap for reverse logistics and scrap management channels for battery reuse and recycling, to achieve circular economy. CII specifically recommended that 25% Parking Space be earmarked and given on long term lease against revenue sharing by Municipal Corporations for EV Charging infrastructure. CII also recommended waiver of GST on end-user for availing charging for EVs. The report highlights the need to rationalise GST on battery fitted in EVs v/s battery detached and sold separately. Both should attract equal GST of 5%, it suggested.
25 January 2022