FII bats for subsidy on e-vehicles to combat pollution

• Ahead of the State budget next month, the Haryana chapter of Federation of Indian Industry (FII) has demanded focused attention for the promotion of electric vehicles and special allocation to control pollution and provide basic amenities to the industries in the unapproved areas.

• In a letter to Haryana Chief Minister, the FII demanded that a special provision be made in the upcoming budget for subsidy to electric vehicles on the pattern of Delhi government that offers a subsidy of Rs. 1.5 lakh and has also waived off the registration charges.

Valuable contributor:

• The industry body argued that this would not only help reduce pollution but also make Haryana a valuable contributor towards the promotion of electric vehicles.

• Special budget should be assigned to control pollution.

• Installation of smog towers in polluted areas should be taken up on priority basis as it will help industries to run smoothly.

• Also, the installation of gas lines in all industrial areas be expedited and provisions for subsidy on gas-operated gensets be made to further motivate industries to switch to this alternative fuel at the earliest.

MSMEs growth:

• The letter pointed out that the Haryana government had in 2018 announced survey and regulation of unapproved industrial units but it has still remained on paper.

• The industry body demanded that the industries in these unapproved areas be provided basic amenities and separate budget be earmarked for it.

• It will result in growth of the Micro, Small and Medium Enterprises (MSMEs) in these areas and create more job opportunities which is one of the top priorities in the Union Budget.

• Besides, the industry body demanded land on lease to the MSMEs, support for agriculture and rural industry and freight subsidy to the traders at par with the manufacturers to boost exports.

Central Government initiatives on EVs:

• Government has set a target of EV making up 30% of new sales of cars and two-wheelers by 2030.

• To build a sustainable EV ecosystem, initiatives like National Electric Mobility Mission Plan (NEMMP) and Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicles in India (FAME India) have been launched.

• NEMMP was launched in 2013 with an aim to achieve national fuel security by promoting hybrid and EVs in the country. There is an ambitious target to achieve 6-7 million sales of hybrid and EVs year on year from 2020 onwards.

• FAME India was launched in 2015 with the objective to support hybrid/EV market development and manufacturing ecosystem.

• The scheme has 4 focus areas viz. technology development, demand creation, pilot projects and charging infrastructure.

• Organisations like Bureau of Indian Standards (BIS), Department of Heavy Industry, Automotive Research Association of India are devising design and manufacturing standards of EVs, Electric Vehicle Supply Equipment (EVSEs) and charging infrastructure to smoothen the advent of in-house production of EVs.

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Mains Paper 3: Economy

Prelims level: National Electric Mobility Mission Plan

Mains level: Subsidy on e-vehicles

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