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In the perspective of FAME II, Niti Aayog Vice President Rajiv Kumar, in a conversation with Suman K. Jha of BW Businessworld, says that electric vehicles are the future, and that the industry and the government should work together to make it happen.
Extracts:
Do you think electric vehicles (EVs) are the future?
Absolutely. We should talk about the new mobility model, which is shared mobility, connected mobility and mobility driven by intermodal mobility that makes maximum use of digital communications, GPS, etc. There are basically three goals, namely minimizing the carbon footprint, maximizing public welfare and making life easier, and generating maximum employment and growth. Just like the internet and the chip before that, I think mobility is in this kind of disruption. We should not focus on personal or individual mobility in the EV area, but rather on public transport.
You have already suggested that 40% of personal and public transportation should have zero emissions by 2030? Do you think that is possible?
Yes, but that will not happen by itself. We must make the maximum effort for that. Government and industry need to work closely together to make this happen.
Do you think public transit should be a priority for electric mobility?
Yes, absolutely. Public transport is not limited to buses but also three-wheelers and smaller vans. It also includes railways and waterways. We have this great opportunity to try to move away from the US mobility model, which is the model of personal transportation: there are 786 cars per 1,000 families in the United States, while we have 18 or 20 cars for 1,000 families. Here is our chance to move away from this model so that we can spread among people not to own a vehicle but to own a ride. We must make the public ride as comfortable, or even more comfortable as a personal ride.
In the personal transport space, do not you think that two-wheelers should also be promoted?
Yes. Here are some interesting figures: 86% of vehicles on the road are not cars. Only 14 percent are cars of which only 2 percent are above Rs 5 lakh. Let's focus on 86%.
Do you think that charged batteries are a much better option than charging stations for electric vehicles?
Horses for lessons. There is no compromise between one and the other. For example, if you have buses that require large batteries, you will need an infrastructure in the depots or other terminals.
You can also provide charging stations for some cars. But if you promote commuting by zero-emission vehicles or if you provide rural-urban connectivity, the exchange could be the best option. We can have three-wheelers that can stop in a place similar to that of a dhaba, quickly remove the battery and put back a recharged battery and be on the road. And then we can have specialized battery charging stations that operate at solar energy. At this point, one should not think of "this versus that". At this point, it should be fairly independent of technology and policies should allow some flexibility and ensure that the technology is agnostic. Today, we are in lithium-ion, but tomorrow we could be in graphite or in fuel cells. The goal is to provide a pulse from a non-zero emission.
While batteries attract 28% of the GST, they are 12% for electric vehicles. Why?
All these questions are addressed in the documents we are writing now and in the framework document as well. We are preparing five thematic papers and an umbrella paper for our Global Mobility Summit on 7 and 8 September, which the Prime Minister himself is leading. There will be ads on all these issues. I assure you that we will achieve political coherence when the summit takes place.
The SIAM Automotive Lobby is of the opinion that the government should encourage a policy that will generate large volumes. They are also asking for similar incentives for electric vehicles. What is the meaning you get?
We are all on the same page. I do not think that industry or officials should approach these two months with predefined notions. My own thought is this: If we can promote shared electric mobility without necessarily depending on subsidies, then it is a much more important and autonomous progress. I do not exclude grants but these should be very targeted and tied to specific goals. But, as you can see, it is such a vast industry and that will occupy such a space that we must find the path of rapid self-sustaining growth.
State governments have developed their own policies on electric vehicles. Do you think that's the way to go? Or do you support a pan-Indian directive for EVs?
Given the size and diversity of India, where the conditions are so different in all states and in all dimensions, I am one of those economists who believe they have a policy for all that has details is not the right thing. What you want is a framework policy that defines some general parameters in which states should be free to oversee their own policies.
We had energy, transportation and chief secretaries of 33 states and UTs here at Niti Aayog to discuss mobility. Encourage them to make a plan of action. They are all their own working groups that will meet now. We all want to have regional workshops in July in the perspective of the World Summit.
So the world summit will be led by the Prime Minister and will participate in key industries?
The national and world industry also participates; the global mayors of cities who have achieved great success in new forms of mobility. Because we want to learn too, we want to root in our own reality. We also have an expo where the latest ZEV and other related aspects will be exposed.
FAME has set a goal of electric vehicles accounting for 4 percent of all new vehicle sales in the next five years. What message would you like the industry to take?
The industry should take the message that this is one of the greatest opportunities that presents itself to her and that she should grasp both hands and prepare for this incredible transformation. . The government will work closely with industry to ensure that mobility becomes the engine of quality jobs and a trigger for stronger growth.
In this vast ecosystem of mobility, where is EV?
This is a centerpiece. Not necessarily the world's Teslas for India, but the ZEVs for public transport and for the poor. And the generation of jobs is at the center of all this mobility policy that we are trying to conceive.
Why does Niti Aayog and the government disagree on the implementation of VE policy?
This is completely wrong. We have a very clear direction given to us by the hon. Prime Minister. We are on the same page.
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