Page 319 - Low Carbon Development in China and India
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Looking for trends in financing low carbon development in the
transport sector is a challenge. This is because defining low carbon
space for transport is difficult. One good area for trends is to look at
financial indicators for public transport in urban areas. It might not
be necessary to look into rural areas in India as rural transport by all
parameters is low carbon. Moreover, rural areas which are seeing rapid
development into mechanized transport might have moved from rural
to urban areas. Another thing to note will be that currently, in India,
car ownership is extremely low; although, the ownership will increase
significantly in urban areas in the future (MoUD 2008). From the
observation of trends of financial indicators in the low carbon space
for transport in India, two aspects emerge—first, public transport in
urban areas and second, low carbon space in non-public modes of
travel (electric vehicles, i.e., EVs).
The National Electric Mobility Plan (NEMMP-2020), released in
January 2013, laid down an aspirational target of 6–7 million hybrid
and electric vehicles per year by 2020. Based on this target, the Union
Minister of Heavy Industries and Public Enterprises, in April 2015,
launched a scheme for Faster Adoption and Manufacturing of Hybrid
& Electric Vehicles (FAME), India with an outlay of INR 795 crore
(approx. USD 132.5 million) for its phase I (2015–17).This will cover
all forms of hybrid (Mild/Strong/Plug-in) and pure electric vehicles.
The broad range of demand incentives available for different categories
of vehicles can be found in the Table 2.16 below:
Table 2.16: Demand incentive available for different categories of vehicles under FAME
Vehicle Segment Minimum incentive (INR) Maximum incentive (INR)
2-wheeler scooter 1,800 22,000
Motorcycle 3,500 29,000
3-wheeler auto-rickshaw 3,300 61,000
4-wheeler cars 11,000 138,000
LCVs 17,000 187,000
Bus 3,000,000 6,600,000
Retro fitment category 15% or INR 30,000 if reduction 30% of kit price or INR 90,000
in fuel consumption is 10-30% if reduction in fuel consumption
is more than 30%
Source: Ministry of Heavy Industries & Public Enterprises, Government of India (2015)
Noting that urban areas and urban population in India are both
increasing, the need for sustainable public transport is also high.
284 Low Carbon Development in China and India
transport sector is a challenge. This is because defining low carbon
space for transport is difficult. One good area for trends is to look at
financial indicators for public transport in urban areas. It might not
be necessary to look into rural areas in India as rural transport by all
parameters is low carbon. Moreover, rural areas which are seeing rapid
development into mechanized transport might have moved from rural
to urban areas. Another thing to note will be that currently, in India,
car ownership is extremely low; although, the ownership will increase
significantly in urban areas in the future (MoUD 2008). From the
observation of trends of financial indicators in the low carbon space
for transport in India, two aspects emerge—first, public transport in
urban areas and second, low carbon space in non-public modes of
travel (electric vehicles, i.e., EVs).
The National Electric Mobility Plan (NEMMP-2020), released in
January 2013, laid down an aspirational target of 6–7 million hybrid
and electric vehicles per year by 2020. Based on this target, the Union
Minister of Heavy Industries and Public Enterprises, in April 2015,
launched a scheme for Faster Adoption and Manufacturing of Hybrid
& Electric Vehicles (FAME), India with an outlay of INR 795 crore
(approx. USD 132.5 million) for its phase I (2015–17).This will cover
all forms of hybrid (Mild/Strong/Plug-in) and pure electric vehicles.
The broad range of demand incentives available for different categories
of vehicles can be found in the Table 2.16 below:
Table 2.16: Demand incentive available for different categories of vehicles under FAME
Vehicle Segment Minimum incentive (INR) Maximum incentive (INR)
2-wheeler scooter 1,800 22,000
Motorcycle 3,500 29,000
3-wheeler auto-rickshaw 3,300 61,000
4-wheeler cars 11,000 138,000
LCVs 17,000 187,000
Bus 3,000,000 6,600,000
Retro fitment category 15% or INR 30,000 if reduction 30% of kit price or INR 90,000
in fuel consumption is 10-30% if reduction in fuel consumption
is more than 30%
Source: Ministry of Heavy Industries & Public Enterprises, Government of India (2015)
Noting that urban areas and urban population in India are both
increasing, the need for sustainable public transport is also high.
284 Low Carbon Development in China and India
