Indian Government Is Delaying In Buying Electric Cars

Indian Government is delaying in buying electric cars
2018-02-02 01:24:59

Indian Government is delaying in buying electric cars

Government Procurement of electronic vehicle seems to get delayed. To promote electric vehicles in the country, the government had decided to purchase 10,000 electric cars for various ministries and offices. First, the Government has to procure immediately. Till now only three thousand units of electrical vehicle have been procured till date. But now due to the change economic condition, the government has decided to slow down the procurement process and they are buying small cars instead of a big vehicle. Now, the focus will be on establishing the first e- charging infrastructure.

The government intends to buy five lakh electric vehicles for government offices in the next three-four years. These cars will replace existing petrol-diesel cars. It is estimated that the use of electric vehicles will reduce the consumption of petrol and diesel by 83 million liters annually, while the carbon emission will be reduced by 2.2 million tonnes. Not only this, by 2030 will be reduced by 64 percent, carbon emission by 37 percent and petroleum import bill by Rs. 3.80 lakh crore.

However, the demand and production of electric vehicles have also been affected in the changed economic conditions. States and departments that had earlier promised large orders for the purchase of electric cars from Energy Efficiency Services Limited (EECL), a central government agency, are now backing down. Producing companies are also delaying production due to declining sales. In the first phase, EECL selected Tata Motors and Mahindra & Mahindra through a competitive tender to supply 10,000 units of electric vehicles. But both companies have been able to supply less than one- third of the cars so far. For this reason, EECL has postponed the plan to issue the second phase of the tender.

EECL is a company of the Ministry of Power. The government has given it the responsibility of setting up charging infrastructure in the country besides purchasing electric vehicles. EECL has so far entered into agreements with several state governments, Municipal Corporations, state transport corporations, and PSUs. These include the governments of Andhra Pradesh, Telangana, Maharashtra, and Punjab, besides Delhi and Ahmedabad Municipal Corporation, Noida Authority, Chennai Metro Rail Corporation, Jaipur Metro Rail, Greater Hyderabad Municipal Corporation and BSNL. A total of 300 AC and 170 DC charging stations have been set up across the country so far. Of these 65 charging stations have been set up in Delhi NCR alone. EECL has tied up with BSNL in the last few days to set up 100 charging stations in Punjab.

The Central Government of India believes that the purchase of e-vehicles on a large scale like LED bulbs will reduce their prices. For this, states have been asked to declare electric vehicle policies. Till now Delhi, Uttar Pradesh, Uttarakhand, Maharashtra, Andhra Pradesh, Telangana, Karnataka, and Kerala have announced e-vehicle policy. It is to be noted that under the Phase-2 scheme, the government has kept a budget of Rs. 10,000 crore to electric vehicles during the current financial year.

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