National Mission On Transformative Mobility And Battery Storage (2019)

Policy Update
Mukti Bari

Background

The Prime Minister of India presented a vision for the country’s transportation system centered on the seven Cs: common, connected, convenient, congestion-free, charged, clean, and cutting-edge mobility, at the Global Mobility Summit in September 2018. According to his address, both in urban and rural locations, mobility has the power to improve people’s lives and propel our economy ahead. Mobility solutions that are safe, inclusive, affordable, and accessible are key strategic elements for accelerating economic growth and enhancing “Ease of Living.”

Globally, shared, connected, and clean mobility solutions are fast emerging as the cornerstones of successful and impactful mobility strategies. India needs to take significant measures to position itself as a major player in the global mobility revolution given its commitment to climate goals. Therefore, it was felt that a specialized multidisciplinary mission was needed to enable cooperative federalism, extensive stakeholder and inter-ministry collaborations, and the implementation of an end-to-end policy framework for changing the mobility landscape.

This mission was to be focused on the following in particular:

Manufacturing
Standards and Specifications
Financial rewards
Overall generation of demand and projections
Regulatory frameworks
Research and Development

In the upcoming decades, India, which is rapidly urbanizing, is said to reap considerable benefits from these measures (NITI Aayog, 2019).

Functioning

Due to the multidisciplinary nature of the National Mission on Transformative Mobility and Battery Storage, it has an Inter-Ministerial Steering Committee, chaired by CEO of NITI Aayog. The Steering Committee comprises Secretaries from the Ministry of Road Transport and Highways, the Ministry of Power, the Ministry of New and Renewable Energy, the Department of Science and Technology, the Department of Heavy Industry, the Department for Promotion of Industry and Internal Trade, and Director-General, Bureau of Industrial Standards.

The Mission spearheads phased manufacturing processes for EVs, their components, and their batteries in addition to recommending and advancing transformational transportation plans. The whole EV value chain will see the localization of production through the implementation of a Phased Manufacturing Program (PMP). The parameters of PMP will be established and the specifics of the program will be finalized by the National Mission on Transformative Mobility and Battery Storage.

The Mission will determine the specifics of the value addition that can be attained at each stage of localization and will have a clear Make in India plan for batteries and other parts for electric vehicles. The next step is for the mission to work with important ministries, departments, and state stakeholders to combine different projects to revolutionize mobility in India.

Performance

Under the Mission, on 8th March 2019, the Faster Adoption and Manufacturing of Electric Vehicles in India (FAME) Scheme, Phase-II, was launched with a financial outlay of ₹10,000 crores (USD 1.35 billion) to support the deployment of electric buses, three-wheelers, four-wheelers, and two-wheelers. A revised version of FAME-II was introduced on 11th June 2021, extending the scheme until 2024 and introducing new incentives for electric vehicles (EVs), particularly two-wheelers, and adopting a demand aggregation and ‘Lighthouse Cities’ approach for electric buses.

Further, the National Programme on Advanced Chemistry Cell (ACC) Battery Storage, launched on 9th June 2021, allocated ₹18,100 crores (USD 2.48 billion) to develop large-scale ACC manufacturing facilities in India. The government also rolled out a production-linked incentive (PLI) scheme for the automotive sector on 15th September 2021, with ₹25,938 crores (USD 3.5 billion) to focus on the development of electric and hydrogen fuel cell vehicles. Since 2017, state-level EV policies have been developed, inspiring 25 states to adopt their own EV policies, with 16 states already notifying their plans.

Additionally, since 2019, skill development programs have been initiated, with nine Indian Institutes of Technology (IITs) launching dedicated programs for EV research and development, further supporting the country’s transition to electric mobility (NITI Aayog, 2019).

Moreover:

A roadmap for the implementation of giga-scale battery production will be looked at, with a focus on integrated cell manufacture by 2021–22 and large-scale module and pack assembly factories by 2019–20.
The Mission is to develop the Phased Manufacturing Program (PMP) for Batteries in detail. The Mission will guarantee the all-encompassing and thorough expansion of India’s battery manufacturing sector.
The Mission will create the required road map so that India may take use of its size and scope to create competitive, creative multimodal mobility solutions that can be implemented internationally in a variety of scenarios.
Through the introduction of a sustainable mobility ecosystem and the promotion of Made-in-India, the Mission would lay forth the blueprint for transformative mobility in “New India,” thereby boosting in-country manufacturing and creating jobs (PIB, 2019).

Impact

The National Mission for Transformative Mobility and Battery Storage is set to revolutionize India’s transportation sector, offering far-reaching advantages for the industry, economy, and the country as a whole. Through innovative mobility solutions, the Mission will not only tackle pressing environmental concerns such as improving air quality in urban areas, but also significantly reduce India’s dependence on oil imports. Additionally, it will play a crucial role in accelerating the adoption of renewable energy and advanced storage technologies, paving the way for a cleaner, more sustainable energy future for India.

One of the Mission’s key objectives is to establish a strategic roadmap that leverages India’s vast market potential to foster a robust domestic manufacturing ecosystem for electric mobility. This will help India become a global leader in electric vehicle (EV) production, enhancing its industrial competitiveness. By promoting the development and large-scale adoption of electric vehicles and battery storage solutions, the Mission will contribute to the country’s efforts to transition towards cleaner energy sources, thereby reducing carbon emissions and enhancing energy security.

Moreover, the Mission’s initiatives align with the broader national goal of improving the ‘Ease of Living’ for citizens by providing cleaner, more efficient, and affordable transportation options. This will directly impact the quality of life, especially in densely populated urban areas where pollution and traffic congestion are major concerns. Furthermore, through the ‘Make-in-India’ initiative, the Mission is expected to generate a wide array of employment opportunities across different sectors, encompassing various skill levels, from highly specialized research and development roles to manufacturing and assembly jobs. By fostering innovation, boosting industrial growth, and creating jobs, the Mission stands as a cornerstone for India’s sustainable development and economic prosperity.

Emerging Issues

According to the Environment And Social Systems Assessment for the Mission, published by the World Bank (2023), there may be quite a few emerging issues that need to be addressed:

Lack of Necessary Infrastructure: A key challenge is the lack of adequate charging infrastructure across the country. While electric vehicles (EVs) are being promoted, the rollout of charging stations, especially in rural and semi-urban areas, remains insufficient. Without a robust charging network, EV adoption might be limited, hampering the overall success of the program.
High Upfront Costs: Despite government subsidies, the initial cost of electric vehicles, particularly for consumers in lower income brackets, remains a concern. Battery technology is still expensive, which can make EVs unaffordable for many, slowing down the adoption rate.
Technological and Skill Gaps: Developing a competitive domestic manufacturing ecosystem for electric mobility requires advanced technological expertise. However, there are concerns over India’s current capacity for research and development (R&D), as well as a shortage of skilled labor in the EV sector.
Battery Disposal: While EVs reduce emissions, the disposal of used batteries poses an environmental hazard. Managing battery recycling and waste effectively will be critical to ensure that the environmental benefits of EV adoption are not offset by pollution from battery disposal.
Awareness: Public understanding of the benefits of EVs is still limited. Many consumers are hesitant to switch from conventional vehicles due to concerns over range, charging infrastructure, and maintenance. A focused awareness campaign will be necessary.

Way Forward

Building a competitive domestic manufacturing ecosystem for electric vehicles and battery storage is crucial. This involves continued investment in research and development to improve battery technology, including enhancing energy density, safety, and recycling capabilities of the country. Developing technical standards and best practices for battery management, including end-of-life disposal and fire safety, is also essential, as outlined in the program’s environmental and social assessments (World Bank, 2023).

Additionally, addressing the infrastructure gap is critical. Expanding charging networks, particularly in rural and semi-urban areas, and developing green charging infrastructure will facilitate the widespread adoption of electric vehicles (EVs). The program must also focus on the reuse and recycling of batteries by operationalizing the recently introduced Battery Waste Management Rules 2022 to mitigate environmental risks.

References

E-Mobility: National Mission on Transformative Mobility and Battery Storage | NITI Aayog. (n.d.). https://www.niti.gov.in/verticals/e-mobility-national-mission-transformative-mobility-and-battery-storage
Mobility Solutions get a boost. (2019). https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1567807
State Bank of India & The World Bank (2023). PforR – Program for Transformative Mobility and Battery Storage- Environment and Social Systems Assessment.

About the contributor: Mukti Bari is a research intern at IMPRI. She is a student of Economics pursuing her B.A. at Symbiosis School for Liberal Arts.

Acknowledgment: I would like to thank Dr. Arjun Kumar, Aasthaba, Sana and Jay for their valuable guidance and feedback.