Drive

Reason to change the EV policy
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India is attempting to get to the future sooner by focussing on electric vehicles. India has to do more with limited funds, so it makes sense to concentrate subsidies on electric-only vehicles rather than hybrids. The change in policy, to increase sales tax on hybrids, has been severely criticised. Critics pointed out that demand for hybrids had plummeted and production of some models had come to a complete halt. There are of course electric cars like Mahindra e2o Plus, e-Verito and e-Supro 3, which should keep the market going, and many others will surely come. So, it is worth asking why had EV sales not grown in all this time. For example, govt auction for 10,000 EVs was hailed as a success, but the follow-up auction had to be pulled.

Perhaps the govt's had hoped to subsidise during the nascent phase of electric vehicles before cost-effective production had established. Or, that it needed to stimulate consumer interest in EVs and rest will fall in place. A closer look would tell that the EV owner is severely hampered by the lack of charging points, but a hybrid owner could survive on regular petrol or diesel. In other words, the subsidy that went into FAME had missed the ball completely. 

Creating a non-oil transportation ecosystem
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What was missing in EV policy and needed to be fixed were supply-side constraints. Govt will take many steps to create a non-oil based transport ecosystem: 

1. CNG filling stations will increase to 10,000 (from 1,400) in 300 districts. Work had started in May 2018. 
Thoughts: Massive 9th round of CGD bidding will make this a reality. CNG offers a cheaper alternative to oil and will tide over the transition to cheap EVs.

2. Fast EV charging stations will be set up for the general public, with govt support, at 3km intervals in select cities, and at all wayside amenities of National Highways.
Thoughts: Govt should think of adding wayside amenities to existing NHs. All cities that off-take EVs from Govt auctions will get selected.

3. EV manufacturing and value-chains for smart charging stations and EV batteries will be encouraged. Its aim will be to bring new technologies and economies of scale in production.
Thoughts: ISRO has transferred Li battery technology to the private sector. Manufacturers still have to develop the means to cost-efficiently mass produce batteries for many uses, from small electronic devices to EVs. Charging technology is improving, eg Terra High Power EV charger takes 8min for 200km charge.

4. Auctions of E-buses for public bus fleets has prompted a 30% drop in prices. E-bus procurement could take-off if leading Indian manufacturers can match prices, ramp up production and offer a complete mobility package.
Thoughts: There will be plenty of buyers if production is scaled up & subsidy support is reduced to a fraction. Indigenous, hassle-free option is ideal and realistic.

5. Diversion of sugarcane for ethanol, along with large hikes in ethanol MSPs & UP sugarcane overproduction will catalyse a ramp-up of ethanol capacity and achieving of 10-15% blending in just 2-3 years.
Thoughts:  India should bring in flex-engine technology and ramp up ethanol from all sources.

6. Other developments: 
-- Indigenous efforts towards methanol production & blending
-- Development of hydrogen fuel cells powdered vehicles
-- Nationwide gas pipeline network and expanded City Gas Distribution coverage
-- Waste to fuels projects
Thoughts: High volume methanol production could start soon. It can be safely used as marine fuel. Hydrogen production should also be ramped up regardless, as it can be mixed with natural gas.

Establishing Charging stations
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PSUs like NTP, Power Grid and Indian Oil have begun to set up charging stations at select locations, with govt providing subsidies. For example, NTPC is doing so in Maha & PGC will do so at Hyderabad metro stations. It may be extended to other metro rail corridors in the country. E-Bus terminals will get chargers (eg 30s super-burst chargers can be set up at bus stations). Private sector like automakers (M&M, Tata) to cab-hailers (Ola, Uber) and state-run enterprises are interested.

Under EESL global tender for 10,000 EVs, 4,000 charging points will be added. Another 15,000 stations are intended over 3-5 years in select 1+m cities, smart cities and busy NHs at 50km intervals. By 2030, there could be 60,000 to 100,000, which match or outnumber the current numbers of petrol & diesel filling stations. This is based on a 30% conversion to EVs.

Rapid technology growth is improving charging stations but also creating confusion. ABB which is at the forefront of this technology has set up a local manufacturing centre at Bengaluru. They recommend sticking to the "Combined Charging System", which is also accepted by most Japanese automakers. According to EESL MD, charging stations should have short-term storage to reduce the burst demand during filling. Safety measures and adequate grid capacity are essential pre-requisites.