Hyderabad: With the renewed focus on eMobility and Indian government’s plan to move to 100 per cent electric vehicles (EVs) by 2030, industry is waiting for the final eMobility policy from Niti Aayog. Progressive States such as Telangana is aggressively looking at this space. Telangana government has prepared a draft policy on EVs, which proposes benefits for manufacturers and to put in place the necessary support system towards embracing the new mode of transport.
The policy has three components-for manufacturers, users and support mechanisms. It will attract huge investments into the State.
A policy of this magnitude has a great benefit in economic terms, although the targets are not yet made public, it could be expected to generate over Rs 25,000 crore and employ nearly 50,000 in a span of five years. The investment and employment opportunities will come from battery and EV manufacturing and also infrastructure services. The proactive approach of the State governments in the country are encouraging signs for the central government to realise the vision of 100 per cent electrification of transportation by 2030.
Number of companies are now looking into EV manufacturing as well as energy storage manufacturing in India to support the government target. While the traditional auto cluster states such as Maharashtra, Tamil Nadu and Gujarat are expected to attract additional investments, there are also opportunities for other States to provide a clear policy for supporting manufacturing as well as for driving demand for EVs in systematic and planned manner.
Dr Rahul Walawalkar, executive director, India Energy Storage Alliance (IESA), told Telangana Today, “The proposed EV policy by the State of Telangana is a welcome step considering it is only the second State after Karnataka to come up with a comprehensive policy on Electric Vehicles, which is well ahead of even the national policy that is expected by end of this year.
The policy aims to provide incentive to both the manufacturing and sale of electric vehicles which is likely to benefit both the automobile manufacturers and buyers.” He added, “Emphasis is also laid on developing the associated infrastructure such as EV charging stations across the State, which is essential if there has to be a shift in the mindset of the end buyer. It is also encouraging to note that the policies in Karnataka and now Telangana are looking to electrify the public transportation fleet to a large extent, be it through electric buses, taxis or even e-rickshaws for the last mile connectivity.”
Two southern states are going ahead with their electric vehicle plans much before the national EV policy. With Karnataka and Telangana taking the lead and companies such as BYD going ahead with their manufacturing plans in Tamil Nadu, there are now clear signs that the region is likely to be the hub for electric vehicle, auto ancillary parts and lithium cell manufacturing and Lithium recycling industries.
Also the citizens could benefit from significant reduction in pollution due to shift to EVs in the coming years. EVs are also expected to have significantly lower operation and maintenance cost, thus helping the State transport agencies to improve cash flows, Walawalkar opines.