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Last Updated : Jun 14, 2018 03:54 PM IST | Source: Moneycontrol.com

Government to make fuel efficiency norms taut to push EV manufacturing

Fuel efficiency norms mandated by the transport ministry require cars to be 30 percent more fuel efficient by 2022, thereby reducing CO2 emission

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The government is planning to make fuel efficiency norms tighter so that automobile manufacturers shift to electric vehicles (EVs) from the conventional internal combustion engines (ICEs) as soon as possible, The Times of India reported. Sources said tighter CO2 emission norms can be achieved by producing a certain share of EVs — nearly 4-6 percent.

A panel headed by road transport secretary YS Malik prepared a report with this recommendation as a part of its 15-point strategy. He argued that fuel efficiency norms will have to be brought down by 20-25 percent over FY18 data to induce 3-5 percent EVs in India. “This approach has to be adopted for cars, three-wheelers and two-wheeler industry,” he said.

Fuel efficiency norms mandated by the transport ministry require cars to be 30 percent more fuel efficient by 2022, thereby reducing CO2 emission.

The panel further suggested offering deductions in scientific research and development other than disincentivising imports by providing protection to domestic manufacturing. This, according to the panel, will help in pushing the EV sales.

Indian Space Research Organisation (ISRO) asked industrial houses to bid for transfer of the domestically developed lithium-ion cell technology to help set up production facilities in India.

K Sivan, head of ISRO, told TOI that Automotive Research Association of India were allowed to use 50Ah and 100Ah cells for developing prototypes of electric scooters or cars, and they were apparently making progress.

Reduced margin money to buy EVs for the first five years is another recommendation made by the panel. Price is one of the major concerns holding back sales of EVs. The panel also suggested that the government should consider low-interest loans for EVs for public transport and taxi services.

The report also suggests including EV charging infrastructure in building norms and parking areas since the availability of charging points encourages people to go for EVs. CSR could also be a reasonable source for funds to set up charging facilities.
First Published on Jun 14, 2018 03:54 pm
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