Pandey was addressing the media after an industry interaction meeting hosted by the Ministry of Heavy Industries in association with ARAI, SIAM and ACMA to share information on the production incentive program (PLI) for the automotive sector.
The minister asked the Indian Automobile Research Association (ARAI) to develop technology to reduce the charging time of electric vehicles. “The automotive sector contributes around 14-15% of the GDP, which can go up to 25-30% and may support the Prime Minister’s vision of making India a $ 5,000 billion economy. The sale of electric vehicles has increased dramatically in recent months due to the various programs and subsidies provided by the government, ”he said.
Pandey further stated that the Advanced Chemical Cell (ACC), which is the main component of the EV battery, is currently imported, and about 30% of the cost of the EV is the cost of the battery itself. This can be reduced if it is produced locally, he said, adding that it is possible because around 70% of the material used in the manufacture of lithium-ion batteries is already available in India.
“With these new PLI programs, the government is providing support of up to Rs 362 crore per gigawatt in this electric vehicle sector,” Pandey said. He also highlighted the government program FAME I and II (Faster adoption and manufacture of hybrid and electric vehicles), which has now been extended for two years until March 31, 2024.
The minister said that with the Production Incentive Program (PLI), this would result in an investment of Rs 42,500 crore and further accelerate the manufacturing of components and batteries in India. “The government is providing financial support of up to 8-13% for auto component manufacturers and up to 13-18% for electric vehicle manufacturers through the program. It will also facilitate the creation of around 7.5 lakh of new advanced-level employment opportunities, ”he added.
The Minister also mentioned that in view of the increase in the use of drones in the coming years for various applications, the Ministry of Heavy Industries has sanctioned Rs 120 crore for research and other related work in this regard.