As Modi's government embarks on its third term, apart from ensuring these schemes boost India's green mobility, addressing bottlenecks like battery swapping and meeting PLI deadlines are likely to be the government's major tasks.
In the previous two terms of Narendra Modi's leadership in the National Democratic Alliance (NDA), green transition in mobility and securing its supply chains had been a pivotal agenda through various flagship schemes, athe most notable being Faster Adoption and Manufacturing of Electric (And Hybrid) Vehicles (FAME).
As the NDA enters its third term in power, its commitment to green mobility is expected to intensify.
Green mobility
Under Modi's first government, electric vehicles (EVs) were propelled into the mainstream through FAME. This initiative was expanded with the introduction of FAME-II, demonstrating the government's long-term commitment to EV adoption.
To bolster infrastructure and manufacturing, the government launched two significant production-linked incentive (PLI) schemes: A Rs 18,100 crore PLI for the automobile sector and a Rs 26,000 crore one for advanced chemical cells.
These measures aim to create an ecosystem for electric mobility in India.
In a decisive move just a day before the election dates were announced, the Centre introduced the Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI).
This initiative allows for importing cars at reduced subsidies, but with a stipulation that companies must invest in India, thereby encouraging local manufacturing and strengthening the domestic market.
As Modi's government embarks on its third term, apart from ensuring these schemes boost India's green mobility, addressing bottlenecks like battery swapping and meeting PLI deadlines are likely to be the government's major tasks.
Critical transition
India's green transition necessitates a critical component: Minerals. During Modi's second term, there was a push towards securing critical minerals, culminating in the release of India's first list of such minerals in 2023.
The Centre has initiated the auction of 38 critical mineral blocks. The challenge for the new mines minister will be to navigate the complexities and auction these blocks, especially since bids were not received for 13 of them.
Failure to build industry trust and attract investors in this sector could set back the country's green transition efforts.
Additionally, India is exploring critical mineral exploration, mining, and technology trade with several countries.
Securing trade deals with these nations is crucial, especially given that the sector is dominated by China.
With the sector witnessing demand, it is crucial for the government to establish a strong domestic foothold and enhance an international presence in the critical minerals sector.
Feature Presentation: Ashish Narsale/Rediff.com
