The recent report of the United Nations – Provisional State of the Global Climate 2023 – states that the average global temperature over the past 10 years, between 2014 and 2023, was about 1.2 degree Celsius above the 1850–1900 average.” What this means is continued severity of climate change induced events such as extreme rainfall, cloud bursts, heat waves, landslides, etc.
India’s transport sector is one of the biggest contributors to overall carbon emissions, eventually leading to increase in global temperatures. It contributes about 14 % of the total carbon emissions and stands third after energy and industries. Almost 90% of the transport related greenhouse gas emissions is accounted for by road transport. As per NITI Aayog, road transport is responsible for 20-30% of urban air pollution in India, necessitating mitigation measures such as deployment of zero-emission vehicles, primarily electric vehicles (EVs) in the current context.
At the local level, EVs fit well from the point of view of tackling air pollution, and at the national level it would contribute to reducing the country’s dependence on fuel, leading to lower crude oil import bills. In addition, it also plays an important role in meeting India’s NDC commitments at the global level.
The share of EVs in year-wise newly registered vehicles has rapidly increased from 0.5% in 2018 to 5% in 2022. It is the result of efforts from multiple stakeholders that India is expected to witness million plus sale of EVs, second year in a row. Government of India’s schemes such as Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME), Production Linked Incentives schemes, and State EV policies are in place to accelerate EV adoption in India. Recently, FAME-II scheme has been extended for a period of two years, up to March 31, 2024. Further, India has allocated INR 181 billion to support domestic battery manufacturing, and auto components with the new PLI scheme, launched in 2022. In-line with the efforts for sustaining, and electrifying the existing public transport system, India has introduced PM eBus Sewa, with an estimated cost of INR 57,613 crore to augment city bus operations by 10,000 buses for next 10 years.
It is now important that initiatives and efforts at the city-level are given adequate focus. TERI, conducted a city-level readiness and capacity needs analysis on EV planning and deployment action chains. Given the early stages of EV transition and potential for Indian cities to jumpstart EV adoption, TERI tried to understand the status of EV readiness and ranking of Indian cities for EV planning and adoption. Though Indian cities have tremendous potential to accelerate EV adoption, the impact of city-level actions at large has been relatively under-explored with limited successes.
Leveraging India’s potential to lead manufacturing and adoption of EVs, following policy interventions may further aid in accelerating the electrification of road and public transport:
-Aiming higher EV adoption in the next stage of policies/incentive schemes through:
- All PSUs/Government Departments to shift to 100 % zero emission vehicles fleet by 2030.
- 30 % electrification target for off-road vehicles and tractors sold in India by 2030.
- Proportionate impetus on the electrification of hard-to-abate vehicle segments – medium and heavy-duty vehicles under FAME-III.
- Non-fiscal demand side interventions: Creation of low emission zones, entry restrictions for non-EV vehicles, preferential parking for EVs, etc. to promote adoption of EVs.
- Setting up of ‘EV Cell’ in all the States and Union Territories of India
-Establishing a sustainable Payment Security Mechanism for effective roll-out of e-buses, zero emission trucks and rooftop-solar-based charging infrastructure in India.
-Allocating budget for upskilling/reskilling manpower in EV industry, as a part of just transition
-Establishing dedicated last-mile connectivity cells/department in State Road Transport Undertakings (SRTUs) and capacity building of SRTU’s for faster adoption of e-buses and improved performance
In the analysis on EV readiness, it is critical to focus on seven key criteria – institutional set-up, adequate infrastructure, reliable technology, economical viability, social willingness, environmentally beneficial, and innovation support. It is now time to increase the ambition for EV adoption.
(Disclaimer: Sharif Qamar is Associate Director, Transport and Urban Governance, TERI. Views are personal.)
