Electric Mobility

Advance Chemistry Cells (ACCs) are the new generation advance energy storage technologies that can store electric energy either as electrochemical or as chemical energy and convert it back to electric energy as and when required.

Integrated battery value can be broadly divided (at the sales end) into the battery pack and the ACCs. While several companies in India have already started investing in battery packs assembly, the capacities of these facilities are too small when compared to global averages. Investments in manufacturing and overall value addition for ACCs are still negligible in India. Hence almost entire domestic demand of ACCs is still being met through imports.

Through this Scheme, the Government of India intends to optimally incentivize potential investors, both domestic and overseas, to set- up Giga-scale ACC manufacturing facilities with emphasis on maximum value addition and quality output and achieving pre committed capacity level within a pre-defined time-period.

The budgetary outlay for this scheme is INR 18,100 cr and it envisages setting up of a cumulative ACC manufacturing capacity of fifty (50) GWh for ACCs and an additional cumulative capacity of (5) GWh for Niche ACC Technologies.

The bidding for this scheme closed on 14 January 2022 and received overwhelming response.

For further details,, please refer to our report on the PLI ACC scheme here: https://www.investindia.gov.in/team-india-blogs/inside-indias-production-linked-incentive-schemes-advance-chemistry-cell-acc

Central as well as State governments have been promoting adoption of EVs by providing fiscal as well as non-fiscal incentives. Some of the incentives being provided on purchase of EVs are:

• FAME India Scheme Phase II (mentioned above)
• Goods & Services Tax (GST) on EVs has been reduced from 12% to 5%,
• Income tax deduction can be claimed on the interest paid on loans taken for purchase of EVs
• Various demand side incentives being offered by 15+ state governments such as exemption from registration fees, special parking zones, upfront incentives on purchase and much more. For details of state subsidies, please refer to our report on state wise comparison of incentives here

The fact is that a typical conventional hatchback has 130-140 gm/km of CO2 emission comparing to an electric vehicle for 100 gm/km when charged by grid and when solar charged, there is ~0 gm/km CO2 emission from an electric vehicle.
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The FAME scheme was introduced in April 2012 to be implemented over a period of 6 years till 2020 to support hybrid/electric vehicles market development and its manufacturing. Under this scheme, demand incentives will be availed by buyers (end users/consumers) upfront at the point of purchase and the same shall be reimbursed by the manufacturers from Department of Heavy Industries, on a monthly basis.

The Union government recently announced its decision to extend the second phase of the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme by two years to March 31, 2024

The demand incentive benefit will be passed on to the consumer upfront at the time of purchase of the xEV itself by way of paying reduced price.

For more information, please visit the following link.