Indian EV Industry Outgrows Need For Subsidies, Says Piyush Goyal
Once the present subsidy regime comes to an end, no more subsidies should be granted to the EV sector, the minister for commerce says.
The electric-vehicle industry is no longer in need of newer incentives and subsidies, Union Minister of Commerce and Industry Piyush Goyal said on Friday.
The electric mobility industry is ready to "set and fly" and it is a good time to move from internal combustion engines to electric ones, the minister said in the backdrop of a stakeholder meeting where various aspects related to the EV industry were discussed. All major EV automakers and battery swapping companies attended the meeting.
Currently, the FAME-II subsidy programme has been supporting the EV industry since 2019. The scheme was launched to encourage a faster adoption of electric and hybrid vehicles by offering upfront incentives on the purchase of electric vehicles and also by way of establishing a necessary charging infrastructure for electric vehicles.
Originally slated to expire in March 2022, the scheme received an extension until July 31, 2024. However, since there has been robust demand for EV vehicles, the government now seems firm on the fact that no new subsidies should be granted for this industry.
Once the present subsidy regime comes to an end, no more subsidies should be granted to the EV sector. Everyone in the meeting unanimously agreed to this, he said.
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During his address on Friday, Goyal stated that discussions were currently underway to address the issue of safety standards in these vehicles and requested all auto and battery swapping companies to provide their comments by Monday at the latest.
Goyal said guidelines had already been released for EV charging stations. He said the government wants to make these guidelines self-regulating in nature and does not want to micromanage this industry.
The government's stand seems pretty clear: venturing into EVs makes for a great economic case in today's day.
Goyal also addressed a consultation meeting on the "Development of Battery Charging and Swapping Infrastructure" on Friday, where he emphasised the need for battery swapping facilities to coexist with charging infrastructure to accelerate the adoption of EVs. He said the adoption of EVs led by the creation of charging infrastructure should be “a people’s movement.”
