India is targeting the deployment of five to seven million electric vehicles in the country by 2020 under the National Electric Mobility Mission Plan (NEMMP) 2020. The NEMMP’s goal is to reduce carbon emissions and cut down on fossil fuel usage.
The NEMMP is targeting 400,000 passenger battery electric cars (BEVs) by 2020, which could lead to a reduction in fuel consumption of up to 120 million barrels of oil. Usage of BEVs will also help in curbing carbon emissions of up to 4 million tons and lead to a 1.3 percent decrease in vehicular emissions by 2020.
The NEMMP was launched in 2013 to achieve national fuel security by promoting hybrid and electric vehicles in the country. The estimated investment for the NEMMP is ~$3 billion (~₹192.8 billion).
According to an official at Department of Heavy Industries, “Under the NEMMP 6-7 million sales of hybrid and electric vehicles year-over-year from 2020 onwards is targeted.” To ensure NEMMP’s success, Faster Adoption and Manufacturing of [Hybrid &] Electric Vehicles (FAME India) was launched with a fund of ₹750 million (~$11.7 million), added the official.
The official also added, “The main intention of the program is to make hybrid and electric vehicles the first choice for the masses and to achieve this end, incentives are being provided to buyers of such vehicles.” The NEMMP will also help India curb emissions as required by the Paris Agreement.
Mercom previously reported that the National Thermal Power Corporation (NTPC) will be developing 20 electric vehicle (EV) charging stations at different locations.
These developments are expected to drive interest from private companies for investment and development of electric vehicles, charging stations and battery storage in India.
Raj Prabhu is a recognized thought leader in clean energy markets where his work has influenced policies worldwide. He has a deep understanding of regulatory policy and clean energy markets and his market and opinion pieces are regularly published on both MercomIndia.com and other leading publications globally. Raj is also a regular speaker and presenter on clean energy policy and finance topics at conferences worldwide. Raj attended the KLE College of Science in Bangalore, India for physics and chemistry, and holds a Bachelor of Science Degree in Hotel and Institutional Management from Johnson and Wales University, Rhode Island. More articles from Raj Prabhu.