Banning of Fossil Fuel-Driven Vehicles

Why in news?

Government of India has planned to ban the sale of fossil fuel-driven 2&3 wheeler vehicles by 2025.

What is the Government’s plan?

Government wants to halt production of internal combustion vehicle,
1. Three-wheelers by 2023 and
2. Two-wheelers with 150cc engines and below by 2025.
NITI Aayog has given a two-week deadline to the industry to come up with a comprehensive plan for introducing electric vehicles (EVs) in the next 5 years.

What is NITI Aayog’s stance?

Pollution - As per a report by Greenpeace and AirVisual, India has 22 of the most polluted cities in the world, with Gurugram being the most polluted.
Two-thirds of the pollution load is due to internal combustion engine based two-wheelers running in major cities.
This will be reduced with the transition.
Dependence – India is hugely dependent on oil imports.
The NITI Aayog estimates savings of Rs 1.2 trillion if the transition takes place.

How did the automobile industry react?

Industry leaders have questioned the urgency.
They also have pointed out the increase in the cost of vehicles due to the price of batteries which constitute 40% of the total cost.
In addition, considerable planning and execution are required to simultaneously develop a complete ecosystem around EVs.
They insist such a short-notice switch is impossible and it would destroy an industry that’s a key global exporter.
Additionally, the industry is already facing difficulties in coping with the transformation to meet the BS-VI regulations.
In the unorganised sector, the vast pool of mechanics would also suddenly find their services aren’t greatly needed.
Only EV manufacturers are enthusiastic about the proposals.

What should be done?

While a move to EVs is inevitable, the industry should be given a reasonable time.
With the country facing mounting unemployment, managing the transition fallout will be all-important.
Chinese example - China took the EV route as early as in the 1990s by classifying electric two-wheelers that move at 20 km/hour as bicycles.
Beijing made them attractive by doing away with registration.
They are allowed to be ridden in bicycle lanes.
Soon, it restricted the ownership of gasoline-powered two-wheelers in some cities.
It has been giving tax benefits and other subsidies to carmakers for almost a decade.
To spruce up their supply chain, Chinese companies have been aggressively buying lithium mines, the critical component for making batteries.

Source: Business Line