Heavy Industries Schemes

ELECTRIC MOBILITY PROMOTION SCHEME (EMPS) -- Detailed Notes

Salient Features

Qualifying criteria for the demand incentives: EV should be accompanied by comprehensive warranty including that of battery from the manufacturer and to have adequate facilities for after sales service for the life of vehicle be manufactured in India and should have local manufacturing & assembly of such parts meet provisions contained in CMVR in terms of type approval, classification, categorization, etc. obtain certificate of EMPS- 2024 eligibility assessment from recognised testing agencies Conditions to avail Demand Incentives:

Original Equipment Manufacturer (OEM) is required to be registered with MHI (Ministry of Heavy Industries) and each of their EV models will need to be approved by MHI. Each vehicle model needs to satisfy minimum technical eligibility criteria. with regard to vehicles efficiency. Phased Manufacturing Programme (PMP): Manufacturers are obligated to follow the PMP guidelines outlining the localization of EV components over time. Project Implementation and Sanctioning Committee (PISC): It is an inter-ministerial empowered committee headed by Secretary (Heavy Industries).

It is constituted for overall monitoring, sanctioning and implementation. It has the power to changing inter se allocation among e-2W/ e-3W. Impact on benefits under other schemes: Incentive under this scheme will be in addition to incentives given under PLI scheme for automobile and auto components industry (PLI-AUTO) and PLI scheme for advanced chemistry cell (PLI-ACC). Purpose: To increase India’s share in global automotive trade Type: Central Sector Scheme Coverage: Both existing and new manufacturing companies

Quick Facts

PRODUCTION LINKED INCENTIVE (PLI) SCHEME FOR AUTOMOBILE & AUTO COMPONENTS -- Detailed Notes

Overcoming cost disabilities, creating economies of scale and building a robust supply chain in areas of Advanced Automotive Products Technologies (AAT) products. Objective

Background: India is projected to be world’s third-largest automotive market in terms of volume by 2026. Incentive Incentive upto 18% for fresh investments in indigenous supply chain of Advanced Automotive Technology (AAT) ₹6,485 crore would be total incentive per entire Group Company (ies). Phased Manufacturing Programme similar to FAME-II Scheme is followed. 2019-20 is the Base Year for calculation of Eligible sales for incentive.

till FY2026-27). Conditions for incentive Minimum 50% domestic value addition Incentive only for once – Either component level or Vehicle level 2% additional incentive for achieving higher growth There are two components in this scheme: Champion OEM (Original Equipement Manufacturer) Incentive scheme: Applicable on Battery Electric Vehicles and Hydrogen Fuel Cell Vehicles of all segments. Component Champion Incentive scheme: Applicable on AAT components of vehicles, Completely Knocked Down (CKD)/ Semi Knocked Down (SKD) kits, etc.

Eligibility: Both existing and new manufacturing companies fulfilling the revenue (from automotive and/or auto component manufacturing) and investment (Global Investment of Company or its GroupCompany(ies) in fixed assets) criteria. Components Revenue Investment Auto OEM Minimum ₹ 10,000 crore ₹ 3,000 crore Auto-Component Minimum ₹ 500 crore ₹150 crore Effect of eligibility under FAME-II: Incentive payable under this scheme to electric vehicle (EV) manufacturers will be independent of/in addition to the incentives given under FAME-II scheme.

Project Management Agency (PMA): IFCI Limited (IFCI), a Non-Banking Finance Company in the public sector. Salient Features Type: Central Sector Scheme Purpose: For enhancing India’s Manufacturing Capabilities of ACC Battery storage Localisation: A mandatory domestic value addition of at least 25% at ‘Mother Unit Level’ and 60% at project level. Monitoring: By the Empowered Group of Secretaries (EGoS) chaired by Cabinet Quick Facts

PRODUCTION LINKED INCENTIVE (PLI) SCHEME ‘NATIONAL PROGRAMME ON ADVANCED CHEMISTRY CELL (ACC) BATTERY STORAGE’ -- Detailed Notes

To achieve greater domestic value addition , while at the same time ensure that the levelized cost of battery manufacturing in India is globally competitive. Objective About Advance Chemistry Cells: ACCs are the new generation advance energy storage technologies. It can store electric energy either as electrochemical or as chemical energy and convert it back to electric energy as and when required. Target: For achieving manufacturing capacity of 50 Giga Watt Hour (GWh) of ACC and an additional cumulative capacity of 5 GWh for niche ACC Technologies.

Incentive: The total annual cash subsidy to be disbursed by the Government will be capped at 20GWh per beneficiary firm. The beneficiary firm will have to commit to set up minimum of 5 GWh of ACCs manufacturing facility. Technology agnostic in nature: The beneficiary firm shall be free to choose suitable advanced technology and the corresponding plant & machinery, raw material, and other intermediate goods. Exclusion: Incentive will not be offered to the conventional battery pack segment of the industry as it is already happening in India.

Impact on benefits under other scheme: The incentive claimed under this scheme will in no way debar/ restrict for any incentive to be claimed under FAME-II or PLI scheme for Automobile and Auto components. Salient Features National Electric Mobility Mission Plan (NEMMP) Launched in 2013 Aim: to achieve national fuel security by promoting hybrid and electric vehicles in the country. Target: To achieve 6-7 million sales of hybrid and electric vehicles year on year from 2020 onwards. The NEMMP 2020 is a vision document and provides a roadmap for guiding all the future initiatives, schemes, policies and other interventions of the government for electric mobility.