Union Minister of Heavy Industries Dr. Mahendra Nath Pandey has said that the Automotive Research Association of India (ARAI) should develop technology to reduce the charging time for electric vehicles.He was speaking at a press conference yesterday, after an industry interaction meet organised by the Ministry of Heavy Industries in association with ARAI, SIAM and ACMA to share information about the production linked incentive (PLI) scheme for the automotive sector.
The Minister said, “The auto field contributes to about 14-15 per cent of GDP, which can go up to 25-30 per cent and can support the PM’s vision for making India a USD 5 trillion economy.The sale of electric vehicles has increased drastically in the last few months due to the various schemes and subsidies provided by the government.”
Referring to the challenges in EV adoption, including the time taken for charging vehicles, he said that since charging is the main concern when it comes to the use of EVs, the government has chosen 9 expressways where 6,000 charging stations have been sanctioned and about 3,000 shall be installed soon.
Dr. Pandey further stated that the Advanced Chemical Cell (ACC), which is the main component of the EV battery, is currently imported and about 30 per cent of the cost of the EV is the cost of battery itself. He said that this can be reduced if it is locally produced. He further added that this is possible because about 70 per cent of the material used in the manufacturing of lithium-ion batteries is already available in India. ‘’With these newly introduced PLI schemes, the government is providing support up to Rs 362 crore per gigawatt in this sector of EVs,” Dr. Pandey said.
He also highlighted the government’s FAME I and II (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) scheme, which has now been extended by another two years to March 31, 2024.
The Minister said with the production-linked incentive (PLI) scheme, it will lead to an investment of Rs 42,500 crore and will further accelerate manufacturing of components and batteries in India.”The government is providing financial support up to 8-13 per cent for auto component manufacturers and up to 13-18 per cent for EV manufacturers through the scheme.This will also facilitate the creation of about 7.5 lakh new advanced-level employment opportunities,” he added.
The minister also mentioned that considering the increase in the usage of drones in coming years for various applications, the Ministry of Heavy Industries has sanctioned Rs 120 crore for research and other related work in this regard.