In a major boost to electric vehicles and related infrastructure, the Maharashtra government has received three proposals involving investments worth more than $1.46 Bn (INR 10,000 Cr) for its policy push for cleaner transport.
In a report, BloombergQuint quoted a senior state official as stating that Mahindra & Mahindra (M&M), Tata Motors, and JSW Energy have shown interest in setting up manufacturing units in the state.
Further, Maharashtra aims to support manufacturing of around 500K battery-powered vehicles in the next five years. The plan is to initially cover six cities: Mumbai, Thane, Pune, Nashik, Aurangabad, and Nagpur.
To amplify its support to cleaner transport, the Maharashtra government will refund taxes to companies making battery-powered vehicles and setting up charging infrastructure, besides offering subsidies on the buying price to consumers.
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During the Magnetic Maharashtra event, Pawan Goenka, managing director at M&M, had announced a proposal for an investment of $73.12 Mn (INR 500 Cr) in EVs. The report added that this proposal is being finalised.
Further, Tata Motors is still finalising land and is looking at an investment of around $73.12 Mn (INR 500 Cr)-$87.73 Mn (INR 600 Cr) while JSW Energy has proposed an investment of $1.46 Bn (INR 10,000 Cr) to make electric vehicles and charging equipment.
The EV market is expected to record double-digit growth rates with rising sales volume annually in India till 2020, according to ASSOCHAM-EY joint study.
The study, entitled Electric Mobility in India: Leveraging Collaboration and Nascency, further said that despite EVs not being mainstream, stricter emission norms, reducing battery prices, and increasing consumer awareness are driving EV adoption in India.
Currently, the EV industry in the country is at a nascent stage, comprising just 1% of the total vehicle sales, which is dominated by two-wheelers (95%).
The good news is that EVs, which are powered by electricity and not fossil fuels, and therefore relatively emission-free, might help India undo some of the damage, or at least slow it down.
What’s even better, in a recent market research survey, 90% of 2,200 respondents said they were willing to switch to EVs given the right infrastructure.
While Maharashtra continues to push for EVs and its infrastructure, the proposals by leading companies is a huge push in the right direction for scalability of its cleaner transport policy.