Press Trust of IndiaNov 22, 2021 15:52:01 IST
The Automotive Research Association of India (ARAI) should develop technology to reduce the charging time for electric vehicles, Union Minister of Heavy Industries Mahendra Nath Pandey said on Saturday.
He was speaking at a press conference here 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 auto field contributes to about 14-15 percent of GDP, which can go up to 25-30 percent 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..." Pandey said.
However, he also spoke about the challenges in EV adoption, including the time taken for charging vehicles.
"To overcome one of these problems related to charging, I am going to urge Automotive Research Association of India (ARAI) to develop the technology that reduces the charging time," the minister said.
Since charging is the main concern when it comes to the use of EVs, the government has chosen nine expressways where 6,000 charging stations have been sanctioned and about 3,000 shall be installed soon, he added.
"The Advanced Chemical Cell (ACC), which is the main component of the EV battery, is currently imported. About 30 percent of the cost of the EV is the cost of battery itself. This can reduce if it is locally produced.
"This is possible because about 70 percent 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," 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.
"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 percent for auto component manufacturers and up to 13-18 percent for EV manufacturers through the scheme. This will also facilitate the creation of about 7.5 lakh new advanced-level employment opportunities," he added.
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