FAME India Scheme Overview (A scheme for Faster Adoption and Manufacturing of Hybrid & Electric Vehicles in India)

Transcription

1 Department of Heavy Industry Ministry of Heavy Industry & Public Enterprises Government of India FAME India Scheme Overview (A scheme for Faster Adoption and Manufacturing of Hybrid & Electric Vehicles in India) Ambuj Sharma Additional Secretary (DHI) 8 th April 2015 Multi-Stake Holder Workshop India Habitat Centre, New Delhi

2 Presentation Outline 1. FAME India.. A prelude A. Genesis B. Apex structure & Multi-Stakeholder involvement C. Learning from Global Experience & Plan for India 2. FAME India Scheme overview - Administrative A. Objective & Implementation Period B. Thrust Areas & Geographic Coverage C. Implementation & Review Mechanism 3. FAME India Scheme overview Technical & Financial A. Vehicles covered & Qualification Parameters B. Scheme outlay & Demand Incentive C. Demand Incentive Disbursement mechanism

3 Presentation Outline 1. FAME India.. A prelude A. Genesis B. Apex structure & Multi-Stakeholder involvement C. Learning from Global Experience & Plan for India 2. FAME India Scheme overview - Administrative A. Objective & Implementation Period B. Thrust Areas & Geographic overage C. Implementation & Review Mechanism 3. FAME India Scheme overview Technical & Financial A. Vehicles covered & Qualification Parameters B. Scheme outlay & Demand Incentive C. Demand Incentive Disbursement mechanism

4 1.A: Genesis of FAME India Apr, 2011 Cabinet Decision on Launch of National Mission on Electric Mobility (NMEM) : Set-up of three tier apex structure NCEM -> NBEM -> NAB July, 2011 ~ Oct 2012: Preparation of NEMMP 2020 NBEM approves broad principles for creation of NEMMP 2020 based on Govt. Industry joint Study Working Groups (& Sub Groups) constituted for micro detailing NCEM approves Delegation of powers to NBEM Recommendations and approval of draft NEMMP 2020 by NBEM & NCEM Jan, 2013 Launch of National Electric Mobility Mission Plan (NEMMP) 2020 by Hon ble PM : NEMMP 2020 outlines broad strategies for deployment of xev s in India Jan, 2013 ~ Dec, 2014: Preparation of Implementation Scheme Deliberations of Working Groups and Stakeholders Consultation for the Scheme Socio-Techno-Commercial modeling for Demand Incentives NBEM approval on recommendation & preparations for EFC approval Fine-tuning of scheme details based on EFC recommendation & EFC approval Feb, 2015 Announcement of FAME India scheme by Hon ble FM The scheme specifies the details for operationalization of NEMMP 2020

5 WG - Demand & Supply Incentives WG Charging Infrastructure WG - Research & Development 1.B: Apex Structure National Council on Electric Mobility (NCEM) National Board on Electric Mobility (NBEM) DHI, National Automotive Board (NAB) SG - Validation of Demand Incentives SG - Vehicle Parameters & Qualification Criteria SG - Incentive Delivery Mechanism SG - Demand Assurance Policy SG Battery and BMS SG - Power Electronics and Motors SG - Testing Infra & HR SG Technology & Standards SG - Hybrid Retrofitting SG Infrastructure Roll Out

6 1.B: Multi-Stakeholders involvement Demand & Supply, Retrofit Government: DHI, MoF (DoR, DoE) Planning Commission, DIPP MNRE, MoRTH NMCC Industry: SIAM, ACMA, SMEV Chair: AS, DHI R&D Government: DHI, DST, TIFAC, MNRE MoF (DoR, DoE) Planning Commission, MoRTH, NMCC Industry: SIAM, ACMA, SMEV, BMA R&D Organizations: CSIR, DRDO, ARAI, NFTDC, BEL, ARCI, IITs Chair: AS, DHI, Infrastructure Government: DHI, MoUD, MoP MoF (DoR, DoE) Planning Commission, DIPP, MoPNG MNRE, MoRTH, NMCC Electricity Board, Delhi Metro Industry: SIAM, ACMA, SMEV Chair: AS, DHI ARAI, NATRiP WGs examined specific issues & made recommendations with rationale, strategy on phasing, milestones, criteria and targets DHI would like to place on record it s sincere appreciation to all stakeholders

7 1.C: Learning from Global experience Governments around the world are promoting hybrid/ electric vehicles including countries such as USA, France, Germany, China and Japan. Considering the high cost of such new technologies, the major focus across the globe has been on market creation through various forms of incentives particularly demand side incentives. The Government-Industry Joint study carried out with help of Knowledge Partner examined all such aspects in Indian context through consumer survey and stakeholder consultation workshops. These formed as vital inputs for the FAME India scheme creation. India an active member in CEM & EVI gives an opportunity to be competitive in hybrid and electric mobility on the world map.

8 1.C: Learning from Global experience UNITED STATES focusing on both Demand and Supply Side Incentives to promote the local xev market. Allocated > 5 Billion USD. Demand Incentives Upto $7,500 for xevs. Income tax credits and sales tax exemptions Supply Incentives > $ 2.4 billion soft loans to OEMs Charging Infrastructure $ 400 million to set up 15,000 charging stations across US FRANCE aims to achieve 2 Million xevs by Allocated > 3.5 Billion USD. Demand Incentives Upto $8000 for xevs Exempted registration, company car tax etc. No tax on electricity for charging xevs Supply Incentives Institutional & Govt. purchase of 100,000 EVs Charging Infrastructure $ 2 billion for 1 Million charging points by 2015.

9 1.C: Learning from Global experience CHINA aims to achieve 5 Million xevs (4Ws) by 2020 and reach xev penetration level of 20-30% by Allocated > 25 Billion USD. Demand Incentives Supply Incentives Upto $8800 for xevs No road taxes on xevs. Taxes and Duty cuts Production incentives to OEMs Research & Development Around $15 Billion Pilot Projects $4.4 Billion over the next 10 years Charging Infrastructure $5 billion for more than 500,000 public chargers JAPAN aims to achieve 2 M xev sales by Allocated > 1.7 Billion USD Demand Side Supply Incentive Upto $2,700 for new xevs when old car is scrapped and ~$1,100 is provided without scrapping. New xevs exempt from acquisition and road taxes Progressive taxes on vehicle manufacturers based on engine size. Charging Infrastructure To set up 15,000 charging stations by 2015

10 1.C: NEMMP 2020: Plan for India Cash Incentives Assured Demand Mandates Demand Creation Pilot Projects Supply Creation Tax regime Duty Structure OEM investments Technology Development Govt. Industry Collaboration. Consortia approach R&D Infrastruc ture Public Infrastructure Govt. Industry (PPP Mode) Regulatory enablers

11 1.C: NEMMP 2020: Plan for India NEMMP 2020 outlined four broad objectives: 1. Faster adoption of xevs in the country 2. Liquid fuel savings 3. Reduction in CO 2 and other pollutants 4. Manufacturing eco-system (job creation and technology capability) Based on the assessment, following projections are made: Objectives Potential Total xev Sales by 2020 (of all vehicle segments) Cumulative xev Sales till 2020 (of all vehicle segments) Cumulative Fuel Savings (of vehicles supported) Cumulative Reduction in CO 2 (of vehicles supported) 6~7 Million (YoY) 15~16 Million ~9500 Million Liters ~24 Million Tonnes Additional Jobs (in automotive sector) 250, ,000

12 1: Summary Genesis of FAME India NMEM National Mission on Electric Mobility (NMEM) NEMMP 2020 National Electric Mobility Mission Plan (NEMMP) NEMMP 2020 outlines broad strategies for deployment of xev s in India FAME India A Scheme for Faster Adoption and Manufacturing of Hybrid & Electric Vehicles in India - The scheme specifies the details for operationalization of NEMMP 2020

13 Presentation Outline 1. FAME India.. A prelude A. Genesis B. Apex structure & Multi-Stakeholder involvement C. Learning from Global Experience & Plan for India 2. FAME India Scheme overview - Administrative A. Objective & Implementation Period B. Thrust Areas & Geographic Coverage C. Implementation & Review Mechanism 3. FAME India Scheme overview Technical & Financial A. Vehicles covered & Qualification Parameters B. Scheme outlay & Demand Incentive C. Demand Incentive Disbursement mechanism

14 2.A: Objective & Implementation period Scheme Objective: The overall scheme is intended to support the xev market development and its manufacturing ecosystem to achieve self-sustenance at the end of the stipulated period. The scheme is proposed to be implemented over a period of 6 years, till The scheme is proposed to continue over the above mentioned period to instill confidence in the industry (to plan investments and create capacities). This scheme is aligned with Make in India, Smart Cities, Smart Grid and NAPCC initiatives. Phase-1 of the scheme shall be implemented over a 2 year period i.e. FY & FY w.e.f 1 st April 2015.

15 2.B: Thrust Areas & Geographic Coverage The scheme shall have 4 focus areas i.e. Technology Development, Demand Creation, Pilot Projects and Charging Infrastructure. Taking into account high level of environmental pollution and fossil fuel usage in road transport in high density urban centers, this phase of the scheme will be implemented in the following select areas: a. Cities under Smart Cities initiatives b. Major metro agglomerations Delhi NCR, Greater Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Ahmedabad. c. All State Capitals and other Urban Agglomerations/Cities with 1 Million+ population (as per 2011 census) d. Cities of the North Eastern States

16 2.C: Implementation & Review Mechanism Overall scheme implementation Department of Heavy Industry shall be the nodal Department for the scheme. The Department shall be responsible for planning, implementation and review of the scheme. It shall also be responsible for allocation of funds for the various components of the scheme, based on approval and allocation of funds by the Finance Ministry. The progress under the scheme shall also be overseen by the National Board for Electric Mobility (NBEM) and the Development Council for Auto & Allied Industries (DCAAI). Department of Heavy Industry shall be the nodal agency for addressing issues relating to the guidelines and for removal of difficulties in the implementation of the scheme. Department of Heavy Industry shall issue guidelines as and when necessary in order to meet the objectives of the scheme.

17 2.C: Implementation & Review Mechanism Scheme Operationalization: Under the overall supervision and direction of Department of Heavy Industry, National Automotive Board shall be the operating agency for the implementation of the scheme including disbursement of funds for the various components. Specific projects under Pilot Projects, R&D/Technology Development and Public Charging Infrastructure components shall be approved by the Project Implementation and Sanctioning Committee (PISC), headed by Secretary, Department of Heavy Industry. An extensive IEC (Information, Education & Communication) program shall be undertaken for creating consumer awareness and promotion of the scheme, on a need basis, through education and training, publicity, organization of business meets/seminars/conferences/symposia etc. jointly by Department of Heavy Industry, Voluntary Organizations, etc. The Department of Heavy Industry shall carry out a scientific analysis of data for verification of performance parameters, fossil fuel savings etc. as a result of this scheme.

18 2.C: Implementation & Review Mechanism R&D / Technology Development The scheme will implement demand driven R&D to achieve desirable target specs for which the efforts would be to synergize Government Industry Academia cooperation to maximize objectives of increasing domestic capacities of product and technology development and commercialization aimed at making the xev market self-sustaining. Projects of applied nature with an aim to introduce viable technologies at the field level will be given priority. A nodal body, called Technology Advisory Group (TAG) on Electric Mobility under joint supervision of Department of Heavy Industry and Department of Science and Technology, will focus on technology foresight and road mapping, benchmarking, project nucleation and proposal evaluation. Specific projects formulated by TAG & CoE s (Centres of Excellence) on key xev technologies would be approved for release of funds by the Project Implementation and Sanctioning Committee (PISC).

19 2.C: Implementation & Review Mechanism Testing Infrastructure The automotive testing infrastructure for R&D, testing and homologation will be upgraded for meeting the requirements of new regulations and standards (ex. motor test beds, battery test beds etc.). Department of Heavy Industry (DHI) through National Automotive Board (NAB) shall be the nodal agency for the creation of such infrastructure.

20 2.C: Implementation & Review Mechanism Pilot Projects DHI/NAB shall be the nodal agency on behalf of Central Government for implementation of pilot projects under the scheme. State governments may also identify a suitable nodal agency for execution of pilot programs in their respective areas. The pilot projects are intended to fulfil objectives of introduction of new technologies, trial of new business models etc. with special focus on public transportation. To ensure maximum impact, project scope will be based on city/state needs, viability & active participation of various stake holders and shall be given financial support by the Department of Heavy Industry through viability gap funding or by other ways of funding under the scheme on a case to case basis. Proposals for pilot projects shall be approved/sanctioned by the Project Implementation and Sanctioning Committee (PISC).

21 Presentation Outline 1. FAME India.. A prelude A. Genesis B. Apex structure & Multi-Stakeholder involvement C. Learning from Global Experience & Plan for India 2. FAME India Scheme overview - Administrative A. Objective & Implementation Period B. Thrust Areas & Geographic overage C. Implementation & Review Mechanism 3. FAME India Scheme overview Technical & Financial A. Vehicles covered & Qualification Parameters B. Scheme outlay & Demand Incentive C. Demand Incentive Disbursement mechanism

22 3.A: Vehicles Covered Hybrid and Electric Technologies (Mild Hybrid, Strong Hybrid, Plug-in Hybrid and Pure Electric) are covered. Following categories of vehicles shall be eligible to avail demand incentives under the scheme: a) Two Wheelers (Category L1 & L2 as per CMVR) b) Two Wheelers (Max power not exceeding 250 Watts) c) Three Wheelers (Category L5 as per CMVR) d) Passenger Cars (Category M1 as per CMVR) e) LCVs (Category N1 as per CMVR) f) Buses (Category M3 as per CMVR) g) Retrofitment (Category M1, M2 & N1 as per CMVR)

23 3.A: Vehicle Qualification Parameters QUALIFICATION PARAMETERS for the purpose of demand incentives have been decided based on study of Global practices and by suitable amendments required for India. The focus is on QUALITY (Safety and Emissions) and PERFORMANCE (Fuel Savings & Electric Range) Qualification Parameters (common for all vehicle segments i.e. 2W, 3W, 4W, LCV and Bus) Parameters Mild HEV Strong HEV Plug-in HEV/ RE-EV Within the purview of CMVR Yes Yes Yes Yes BEV Compliance to Safety and Emission Regulations Yes Yes Yes Yes Technology Functions Yes Yes Yes Yes Fuel / Electrical Energy Consumption Yes Yes Yes Yes Electric Range Not Applicable Not Applicable Yes Yes

24 3.B: Scheme Outlay The Phase-1 of the scheme has a total outlay of Rs 795 crore, over 2 years Component of the scheme Technology Platform (Including testing infrastructure) Rs. 70 Crore Rs. 120 Crore 2. Demand Incentives Rs. 155 Crore Rs. 340 Crore 3. Charging Infrastructure Rs. 10 Crore Rs. 20 Crore 4. Pilot Projects Rs. 20 Crore Rs. 50 Crore 5. IEC/Operations Rs. 05 Crore Rs. 05 Crore Total Rs. 260 Crore Rs. 535 Crore Grand Total Rs. 795 Crore As initial outlay, Rs 75 Crore has been provided in Union Budget Rest of the fund shall be arranged by DHI from Automotive Cess fund, DHI Plan funds in consultation with Ministry of Finance. Flexibility of fund distribution among 4 focus areas shall be there, subject to approval by PISC.

25 3.B: Demand Incentive - Principles The demand incentive amount has been determined for each category (vehicle technology battery type), taking into account the principles of Total Cost of Ownership (TCO), Pay-back Period on account of fuel savings, cost of maintenance etc. Vehicles under the scheme have been categorized based on two types of battery technologies: Conventional Battery and Advance Battery. Conventional Battery represents the batteries with Lead as the principal chemical Element. Advance Battery represents the new generation batteries without Lead such as Lithium polymer, Lithium Iron phosphate, Nickel Metal Hydride, Zinc Air, Sodium Air, Nickel Zinc, Lithium Air etc. The Demand Incentive is proposed in 2 slabs Level 1 and Level 2. In principle, the Level 2 incentive shall be around 120% of the Level 1 incentive. In general, in order to qualify for Level 2 incentive slabs, the vehicle shall have to meet 50% higher qualifying targets vis-à-vis Level 1 incentive. The principle of having two incentive slabs is proposed to promote development of technologies and vehicles with higher fuel savings potential.

26 3.B: Demand Incentive 2W Category: L1, L2 &

27 3.B: Demand Incentive 3W Category: L5 (Three Wheelers)

28 3.B: Demand Incentive 4W Category: M1

29 3.B: Demand Incentive LCV Category: N1

30 3.B: Demand Incentive Buses Category: M3

31 3.B: Demand Incentive Retrofitment Category: M1, M2 & N1 (Retofitment)

32 3.C: Demand Incentive Delivery Mechanism

33 3.C: Demand Incentive Delivery Mechanism The demand incentive shall be disbursed through an e- enabled framework and mechanism set-up under DHI/NAB. Under this mechanism the manufacturer will reduce the purchase price of a hybrid and electric vehicle (the purchase price will be reduced by the level of the eligible predetermined incentive amount) at the time of selling to the buyer. The manufacturers of vehicles and hybrid retrofit kit manufacturer/supplier will submit their claims for reimbursement of demand incentive on monthly basis to the Department of Heavy Industry/NAB. Claim for incentive reimbursement shall be settled in not more than a month s time.

34 Role of State Governments State Governments have an important role in successful implementation of the scheme through a mix of following measures: Fiscal measures Reduction of VAT, Registration charges, Road Tax etc for xevs Enabling measures for establishing charging infrastructure including amendment in building byelaws/ planning permissions. Identification and introduction of Pilot Projects Direct Financing, particularly for Public Transportation through State Finance Corporations. Aligning various state government subsidies / loan schemes under SC/ST welfare, Women welfare, Youth welfare, Backward classes welfare, Ex-servicemen welfare etc. to promote electric mobility.

35 For Public Information 1. The FAME India scheme has been notified by Government of India vide Gazette Notification No.631 dt. 25 th March 2015, based on Department of Heavy Industry, MoHI&PE S.O. No 830(E) dated The same has been uploaded in DHI website 2. An Office Memorandum has been issued by Department of Heavy Industry to Test agencies for testing and approval of xevs, and to certify the claim for incentives as per the FAME India scheme guidelines. The same has been uploaded in DHI website

36 Thank You Very Much Questions??