Lok Sabha Question No. 327 (STARRED), answered on 2024-12-18
Subject: EV Sub-Systems
Ministry: ELECTRONICS AND INFORMATION TECHNOLOGY
Asked by: Smt. Aparajita Sarangi, Shri Praveen Patel

## GOVERNMENT OF INDIA MINISTRY OF ELECTRONICS AND INFORMATION TECHNOLOGY

## LOK SABHA

## STARRED QUESTION NO. *327

TO BE ANSWERED ON: 18.12.2024

## EV SUB-SYSTEMS

## * 327. SMT. APARAJITA SARANGI: SHRI PRAVEEN PATEL:

Will the Minister of Electronics and Information Technology be pleased to state:

- (a) the  specific  areas  where  innovations  have  been  proposed  by  the  Government  to enhance/encourage the development of Electric Vehicle (EV) sub-systems;
- (b) the  manner  in  which  this  initiative  promotes/encourages  indigenous  technologies  in the electric vehicle sector and contributes to the vision of Atmanirbhar Bharat ;
- (c) whether the Government proposes to promote Research and Development (R&D) for development of sub-systems such as EV batteries, charging infrastructure and motor controllers and if so, the details thereof;
- (d) the  schemes  implemented  by  the  Government  to  provide  financial  assistance  and subsidies for EV sub systems so far;
- (e) whether  any  special  fund  has  been  set  up  by  the  Government  to  provide  financial assistance to startups and MSMEs in EV related sectors and if so, the details thereof; and
- (f) whether  the  Government  proposes  to  accelerate  development  of  EV  infrastructure through partnership between public and private sectors and if so, the details thereof?

## ANSWER

MINISTER FOR  ELECTRONICS AND INFORMATION TECHNOLOGY (SHRI ASHWINI VAISHNAW)

(a) to (f):   A Statement is laid on the Table of the House.

………

(a) to (f):  Electric Vehicles (EVs) provide a range of environmental to economical benefits over conventional vehicles. To promote development of indigenous technologies and thereby strengthen the local manufacturing base, Ministry of Electronics and Information Technology (MeitY)has  initiated  a Research  &  Development  (R&D)  programme to  encourage  the development of Electric Vehicles Sub-Systems (EVSS) in the areas of:

-  Electric Motor
-  EV Chargers (AC/DC)
-  DC-DC Converters
-  Controller
-  Battery Management Systems (BMS)

In the proposed programme, financial support is provided to academia, R&D organizations and industries including Startups &MSME to carry out R&D activities for the development of EV sub-systems.

In October 2024, MeitY in association with Ministry of Heavy Industries (MHI) has invited proposals  through  a  Joint  Call  for  Proposal  for  the  R&D  of  EV  sub-systems.  Major  R&D areas identified in the MeitY-MHI Joint Call for Proposal include development of Electric Motor Drive Trains, EV Chargers (AC/DC), Converters, Controllers and Battery Management Systems (BMS) with safety and intelligence.

Salient Features of the Call for Proposal are:

-  MeitY provides financial support as grant-in-aid to carry out R&D activities for the development of EV sub-systems.
-  MHI supports the testing and certifications of the developed technologies as per the standards alongwith the propagation of these technologies.
-  The proposals have been invited in a consortium mode involving academic institutes/ R&D  organization  for  the  design  and  development,  Product  development  agency (PDA) to support the development of the product, industry to commercialize it and vehicle manufacturer to use the developed products in their regular manufacturing.
-  Minimum  upfront  contribution  of  20%  of  the  project  outlay  will  be  borne  by  the participating  industry  partner.  This  multi-stakeholder  model  is  being  followed  to accelerate  the  commercialization  of  the  indigenous  development  of  EV  sub-system technologies.

MeitY is also promoting Research and Development (R&D) for development of sub-systems such  as  rechargeable  battery  cell  manufacturing  technology  for  EV  batteries.  A  Centre  of Excellence (CoE) has been set up at C-MET, Pune, an R&D society of MeitY, for the design and  development  of  Lithium-ion  battery  (LIB),  Sodium-ion  battery  (SIB),  and  Li-polymer battery cell technologies.

Department of Science and Technology (DST) is supporting Research and Development in the EV domain through the following scheme:

-  Mission for Advancement in High Impact Areas in Electric Vehicle (EV) components with  focus  on  Battery  Cells,  Power  Electronics,  Machines,  Drives  and  Charging Infrastructure. A call for proposal has already been launched.
-  NIDHI Seed Support Program which provides financial support to startups through the  (NIDHI-SSP),  helping  them  scale  their  innovations  into  successful  ventures,  in various sectors including EVs, and batteries, etc.

In  addition,  MHI  has  following  initiatives  to  provide financial  assistance/subsidies  on EV/EV Sub-Systems :

- i. Production Linked Incentive (PLI) Scheme for Automobile and Auto Component Industry  in  India  (PLI-Auto): The  Government  approved  this  scheme  on  23 rd September,  2021  for Automobile  and  Auto  Component  Industry  in  India  for enhancing  India's  manufacturing  capabilities  for  Advanced  Automotive  Technology (AAT) products with a budgetary outlay of Rs. 25,938 Crore. The scheme provides financial incentives to boost domestic manufacturing of AAT products with minimum 50%  Domestic  Value  Addition  (DVA)  and  attract  investments  in  the  automotive manufacturing value chain.
- ii. Faster  Adoption  and  Manufacturing  of  Hybrid  &  Electric  Vehicles  in  India (FAME India) Scheme Phase-II: The Government implemented this scheme for a period of five years from 1st April, 2019 with a total budgetary support of Rs. 11,500 crore.  The  scheme  incentivises  e-2Ws,  e-3Ws,  e-4Ws,  e-buses  and  EV  public charging stations.
- iii. PLI Scheme for Advanced Chemistry Cell (ACC): The Government on 12th May, 2021  approved  PLI  Scheme  for  manufacturing  of  ACC  in  the  country  with  a budgetary  outlay  of  Rs.  18,100  Crore.  The  scheme  aims  to  establish  a  competitive domestic manufacturing ecosystem for 50 GWh of ACC batteries.
- iv. PM  Electric  Drive  Revolution  in  Innovative  Vehicle  Enhancement  (PM  EDRIVE) Scheme: This scheme with an outlay of Rs. 10,900 crore was notified on 29 th September 2024. It is a two-year scheme which aims to support electric vehicles including e-2W, e-3W, e-Trucks, e-buses, e-Ambulances, EV public charging stations and upgradation of testing agencies.
- v. PM  e-Bus  Sewa-Payment  Security  Mechanism  (PSM)  Scheme: This  Scheme notified  on  28.10.2024,  has  an  outlay  of  Rs.  3,435.33  crore  and  aims  to  support deployment of more than 38,000 electric buses. The objective of scheme is to provide payment security to e-bus operators in case of default by Public Transport Authorities(PTAs).
- vi. Scheme  for  Promotion  of  Manufacturing  of  Electric  Passenger  Cars  in  India (SPMEPCI) was  notified  on  15th  March,  2024  to  promote  the  manufacturing  of electric cars in India. This requires applicants to invest a minimum of Rs. 4150 crore and to achieve a minimum DVA of 25% at the end of the third year and DVA of 50% at the end of the fifth year.

The initiatives of the Government is ensuring support for the complete ecosystem of EV.  The support  for  R&D  to  encourage  indigenization  of  EV  sub-system  technologies/products  is expected to enhance domestic manufacturing. Various schemes for incentives and subsidies to  promote  commercialization  and  manufacturing  of  EVs  will  strengthen  the  local  supply chain in the EV sector. These initiatives of the Government will contribute to the vision of Atmanirbhar Bharat.

*******