India to announce electric vehicle policy soon: Narendra Modi

Prime Minister Narendra Modi said on Friday the goverment will soon unveil a clean mobility policy to boost the production of electric vehicles and alternative fuels-driven vehicles as part of the country's efforts to fight climate change and boost economic growth.

“We will soon put in place a stable policy-regime around electric and other alternative fuel vehicles. Policies will be designed as a win-win for all, and enable huge opportunities in the automotive sector,” Modi said in his opening address at NITI Aayog's first global mobility summit.

“The world is now in the middle of a new mobility revolution. It is, therefore, important to understand mobility as a wider construct. Mobility is a key driver of the economy. Better mobility reduces the burden of travel and transportation and can boost economic growth.”

Modi also pitched for investment in manufacturing of electric vehicles and smart charging facilities, saying mobility is a key driver of the economy. And keeping his penchant for acronyms alive, Modi summed up his vision for the future of mobility in India based on 7 C’s—Common, Connected, Convenient, Congestion-free, Charged, Clean, and Cutting-edge.

India is increasingly pushing electric mobility and the use of alternative fuels in an effort to cut pollution levels which many say is a result of the rapidly growing number of automobiles in the country.

Modi suggested championing the idea of "clean kilometres" through the use of bio-fuels, electric or solar charging. He added that India has some inherent strengths like less dependence on private cars compared to other countries. “We have fewer vehicles per capita than other major economies. Thus, we do not carry much of the baggage of other economies that were built on the back of private car ownership,” he said.

According to industry sources, the government is likely to offer incentives for mass adoption of electric vehicles in the second phase of its electric vehicles policy. The proposed subsidy is likely to be for batteries rather than entire vehicles.

The launch of the long-awaited FAME II [Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles] has already suffered many delays. The first phase is officially effective till September end.