India Plans Battery PLI to Boost EV Adoption
POWER & RENEWABLE ENERGY

India Plans Battery PLI to Boost EV Adoption

The Indian government is actively developing a new Production Linked Incentive (PLI) program for batteries, aimed at reducing storage costs and promoting the adoption of electric vehicles (EVs) in the country. Union Minister for Power and New & Renewable Energy, R K Singh, emphasised the inevitability of an electric future and the importance of decreasing storage costs. He noted that once storage costs come down, traditional diesel and petrol SUVs will become obsolete.

During the launch of an EV dashboard created by the OMI Foundation, Singh highlighted that pricing is a major obstacle to EV adoption, primarily due to high storage costs. To address this issue, he announced the government's plan to introduce another PLI program to boost manufacturing capacity and production volumes, ultimately leading to cost reduction.

Additionally, Singh discussed the challenge posed by the concentration of lithium resources in a few countries. He emphasised the need to diversify into alternative chemistries, like sodium-ion batteries, to secure the EV supply chain.

In a positive development, EV sales in India surged to 371,214 units in the third quarter of 2023, marking a 40 per cent year-over-year increase from the 264,781 units sold in the same period the previous year.

The government's commitment to promoting EVs is underscored by a recent recommendation from a parliamentary committee to extend the Faster Adoption and Manufacturing of Electric and Hybrid Vehicles (FAME) Phase II initiative until 2027. The goal is to make EVs more affordable in India, given that electric vehicles remain relatively costly. The committee pointed out the need for continued subsidies to encourage EV adoption, especially for electric two-wheelers, in light of FAME-II's original target of supporting 1,562,090 vehicles over five years not being met.

The Indian government is actively developing a new Production Linked Incentive (PLI) program for batteries, aimed at reducing storage costs and promoting the adoption of electric vehicles (EVs) in the country. Union Minister for Power and New & Renewable Energy, R K Singh, emphasised the inevitability of an electric future and the importance of decreasing storage costs. He noted that once storage costs come down, traditional diesel and petrol SUVs will become obsolete. During the launch of an EV dashboard created by the OMI Foundation, Singh highlighted that pricing is a major obstacle to EV adoption, primarily due to high storage costs. To address this issue, he announced the government's plan to introduce another PLI program to boost manufacturing capacity and production volumes, ultimately leading to cost reduction. Additionally, Singh discussed the challenge posed by the concentration of lithium resources in a few countries. He emphasised the need to diversify into alternative chemistries, like sodium-ion batteries, to secure the EV supply chain. In a positive development, EV sales in India surged to 371,214 units in the third quarter of 2023, marking a 40 per cent year-over-year increase from the 264,781 units sold in the same period the previous year. The government's commitment to promoting EVs is underscored by a recent recommendation from a parliamentary committee to extend the Faster Adoption and Manufacturing of Electric and Hybrid Vehicles (FAME) Phase II initiative until 2027. The goal is to make EVs more affordable in India, given that electric vehicles remain relatively costly. The committee pointed out the need for continued subsidies to encourage EV adoption, especially for electric two-wheelers, in light of FAME-II's original target of supporting 1,562,090 vehicles over five years not being met.

Next Story
Infrastructure Transport

Sikkim Seeks Double Lane Link to Siliguri

Sikkim Chief Minister Prem Singh Tamang has pressed the National Highways and Infrastructure Development Corporation Limited (NHIDCL) to design a standard double lane highway between the state and Siliguri in West Bengal. Meeting NHIDCL Managing Director Krishan Kumar and his team in Gangtok, the Chief Minister highlighted persistent landslides and weather related disruptions on the existing Sevoke–Gangtok corridor.He called for a long term, reliable solution that would keep traffic moving year round, especially during the monsoon season. NHIDCL officials said a consultant has alread..

Next Story
Infrastructure Transport

Centre Clears Rs 36.67 Bn Road Plan for Himachal

Public Works Minister Vikramaditya Singh announced that the Union Government has sanctioned Rs 36.67 billion for the construction and upgrade of roads, bridges and related infrastructure across Himachal Pradesh in 2024 25. The funding—part of the Chief Minister’s revised annual proposal—covers carriageway widening, crash barrier installation and bridge works on national highways.The Minister said the state previously received only Rs 2.69 billion against a 2023 24 request for Rs 26 billion, prompting fresh talks with Union Road Transport and Highways Minister Nitin Ga..

Next Story
Infrastructure Transport

GDA Drafts Rs 1.93 Billion Plan to Extend Hindon Elevated Road

The Ghaziabad Development Authority (GDA) has prepared a Detailed Project Report (DPR) to add two ramps to the 10.3 kilometre Hindon Elevated Road, giving commuters in Vasundhara and Indirapuram quicker access to Delhi and Raj Nagar Extension. The extension is costed at about Rs 1.93 billion and will be sent to the Uttar Pradesh government for funding, potentially under the Sixteenth Finance Commission.At present, the signal free corridor runs from Raj Nagar Extension to UP Gate on the Delhi border, with a single down ramp at Kanawani and an up ramp at Vasundhara. The new design intr..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?