National Electric Mobility Plan 2020 Targets Deployment of Up to 7 Million EVs Across India

India’s recent budget has also taken up the cause of expanding e-mobility


The National Electric Mobility Mission Plan (NEMMP) 2020 targets the deployment of up to 7 million hybrid and electric vehicles (EVs) in India by 2020.

This is a ‘national mission’ document providing the vision and the roadmap for faster adoption of electric vehicles and their manufacturing in the country, said the Minister of Heavy Industries and Public Enterprises, Arvind Ganpat Sawant, answering a query in the Rajya Sabha.

This plan has been designed to enhance national fuel security, to provide affordable and environmentally friendly transportation, and to enable the Indian automotive industry to achieve global manufacturing leadership.

Recently, the government announced the second phase of FAME with a budget of ₹100 billion ($1.41 billion) to be executed over three years from April 1, 2019.  The main objective of the second phase of the FAME program is to encourage the faster adoption of electric and hybrid vehicle by way of offering an upfront incentive on the purchase of EVs and also by establishing the necessary charging infrastructure for EVs.

Numerating the initiatives that have been taken up by the government to promote electric mobility in the country, Ganpat, informed the House that the applicable rates of GST on EVs had been reduced and the Ministry of Power has allowed the sale of electricity as ‘service’ for charging of EVs. This would provide a huge incentive to attract investments into charging infrastructure. The Ministry of Road Transport Highways recently issued a notification regarding the exemption of permit in case of battery-operated vehicles.

The nation is gearing up for a mobility revolution. Even the newly announced budget puts an impetus on EV adoption in India. To make EVs affordable to the consumers, the government will provide additional income tax deduction of ₹150,000 (~$2,190) on the interest paid on loans for EVs. This amounts to the benefit of around ₹250,000 (~$3,651) over the loan period to the taxpayers who take loans to purchase EVs. Moreover, to promote e-mobility, customs duty on certain parts of electric vehicles will also be exempted.


Image credit: UITP India