Explained - NEMMP 2020

Explained - National Electric Mobility Mission Plan (NEMMP) 2020


What is National Electric Mobility Mission Plan (NEMMP) 2020?

The National Electric Mobility Mission Plan (NEMMP) 2020 is a National Mission document providing the vision and the roadmap for the faster adoption of electric vehicles and their manufacturing in the country. 
This plan has been designed to enhance national fuel security, to provide affordable and environmentally friendly transportation and to enable the Indian automotive industry to achieve global manufacturing leadership.

FAME Scheme :-

As part of the NEMMP 2020, Department of Heavy Industry formulated a Scheme viz. Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME India) Scheme in the year 2015 to promote manufacturing of electric and hybrid vehicle technology and to ensure sustainable growth of the same.

FAME Phase 1 :-

The Phase-I of this Scheme was initially launched for a period of 2 years, commencing from 1st April 2015, which was subsequently extended from time to time and the last extension was allowed up to 31st March 2019.

The 1st Phase of FAME India Scheme was implemented through four focus areas namely 
(i) Demand Creation 
(ii) Technology Platform 
(iii) Pilot Project 
(iv) Charging Infrastructure. 

Market creation through demand incentives was aimed at incentivizing all vehicle segments i.e. 2-Wheelers, 3-Wheelers Auto, Passenger 4-Wheeler vehicles, Light Commercial Vehicles and Buses. Also, grants were sanctioned for specific projects under Pilot Projects, R&D/Technology Development and Public Charging Infrastructure components under the scheme.

Objective of NEMMP 2020 :-

Under the NEMMP 2020, there is an ambitious target to achieve 6-7 million sales of hybrid and electric vehicles by the year 2020. 

The main objective of the scheme is to encourage faster adoption of electric and hybrid vehicle by way of offering upfront incentive on purchase of electric vehicles and also by establishing the necessary charging infrastructure for electric vehicles.

What is required to achieve the target ?

Based on the experience gained in the Phase-I of FAME India Scheme, it has been observed that sufficient number of charging infrastructure is required to achieve expected outcome of the plan, which is being addressed presently in Phase-II of FAME Scheme.

Various initiatives have been taken by the Government to promote electric mobility in the country :-

(i) Under new GST regime, the rates of GST on Electric Vehicles has been kept in the lower bracket of 12% (with no Cess) as against the 28% GST rate with Cess up to 22% for conventional vehicles which may reduce to 5% after Union Budget 2019 presents.

(ii) Ministry of Power has allowed sale of electricity as ‘service’ for charging of electric vehicles. This would provide a huge incentive to attract investments into charging infrastructure.

(iii) Ministry of Road Transport Highways issued notification regarding exemption of permit in case of battery operated vehicles.

(iv) Issue of Expression of Interest (EoI) for deployment of 5000 electric buses by State Transport Departments/Undertakings etc.

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