Government Of India Approves Rs 26,000 Crore PIL Scheme To Push Electric And Hydrogen Vehicle Adoption

Adopting electric as well as hydrogen fuel cell vehicles in India is set to get easier as the Government of India has approved a Production Linked Incentive (PIL) scheme worth Rs 26,058 crore, to be invested over a five-year period to boost manufacturing of EVs and FCEVs. 

This incentive structure will be split into two segments. One will aid production of EVs and FCEVs, with the other half aiding manufacturing of components. It is a part of a variety of PILs in 13 sectors worth up to Rs 1.97 lakh crore set aside in the 2021-22 budget.

Available for current as well as new manufacturers, this incentive scheme aims to help overcome the cost disabilities that come with manufacturing advanced automotive technologies. The government estimates this scheme will help inject fresh investments of Rs 42,500 crore over the next five years and incremental production of over Rs 2.3 lakh crore. The government also expects this PIL scheme to generate up to 7.5 lakh employment opportunities over this five year period. 

Shailesh Chandra, President of the Passenger Vehicle Business Unit at Tata Motors, commented on the announcement saying:  “As a homegrown leading automotive brand in India, we at Tata Motors are delighted to see the new Production-Linked Incentive (PLI) scheme announced today. The government has taken a holistic approach to make India 'Aatmanirbhar', especially in technology areas, that will be relevant and important in future. The scheme promotes manufacturing, export of electric vehicles and those running on hydrogen fuel cells, their supporting infrastructure, as well as new technology auto parts requiring advanced production techniques."  

Society of Indian Automobile Manufacturers (SIAM) President Kenichi Ayukawa had this to say: “SIAM is grateful to the Hon’ble Prime Minister, Hon’ble Minister of Heavy Industries, Secretary Heavy Industries, and all other policy makers in the Government involved in launching the PLI Scheme for the auto industry. The scheme will contribute towards reducing carbon emissions and oil imports with local manufacturing. SIAM will be happy to engage with the Ministry of Heavy Industries for detailing and fine-tuning, execution and further strengthening the scheme.” 

Electric vehicles that have recently arrived in India include the Jaguar I-Pace and the Tata Tigor EV. Next on the list is the Audi e-tron GT on September 22. Other upcoming EVs include the Volvo XC40 Recharge, Mahindra’s all-electric eXUV300 and the eKUV100. Tesla is also set to begin its India innings with the Model 3 sedan and Model Y SUV.