The budget presented by the government for the period 2019-2020 notably scales upward the incentives to encourage faster adoption of electric vehicles. These incentives include upfront schemes on purchase and charging infrastructure, as well as tax rebates on interest paid on loans through an income tax deduction, GST tax rate reduced to 5% instead of 12%.
The measures focus on battery-operated vehicles targeted by the Phase-II of FAME scheme, approved on March 8, 2019 by an office memorandum
. They target two-wheeler, three-wheeler and four-wheeler categories.
In January 2006, the Ministry of Power announced the Tariff Policy, in continuation of the National Electricity Policy of 2005. The Tariff Policy included certain provisions regarding renewable energy and cogeneration.
Under the Electricity Act 2003 and the National Tariff Policy 2006, the central and the state electricity regulatory commissions must purchase a certain percentage of grid-based power from renewable sources. Solar power is to comprise 0.25% of power purchases by states by 2013, and 3% by 2022.
The appropriate electricity commission is to fix a minimum percentage for purchase of energy from renewable and cogeneration sources, taking into account resource availability and impact on tariffs. Percentages for energy purchase were made applicable for tariffs to be determined by the State Electricity Regulatory Commission (SERC) by 1 April 2006.
Procurement by distribution companies is to be done at preferential tariffs, determined by the appropriate commission, to encourage non-conventional energy technologies to eventually compete with conventional ones. Such procurement is to be done through a competitive bidding process.
In January 2011, the Tariff Policy was amended to align with the National Solar Mission strategy. State electricity regulators to purchase a fixed percentage of solar power. This will be supported by a Renewable Energy Certificate (REC) mechanism.
This Plan aims to ensure reliable access to electricity. The Plan's 4th chapter deals with initiatives and measures for GHG mitigation, and aims to keep CO2 intensity declining while massively expanding rural access and increasing power generation to meet the demands of a rapidly growing economy.
The main initiatives are in technological improvements of power stations - increase of unit size, introduction of clean-coal technologies (super-critical technology; ultra-super-critical technology; CFBC- Circulating Fluidised Bed Combustion technology; IGCC- integrated gasification combined cycle technology); renovation and modernisation of thermal power plants; renovation, modernisation and uprating of hydro-electric power projects; retirement of old and inefficient thermal plants; generation and energy efficiency measures; efficient use of resources (including combined cooling heating and power); distri-buted generation; coal quality improvement.
It also calls for the development of renewable sources, including solar, through the mandatory use of the renewable purchase obligation by utilities backed with a preferential tariff.
The National Auto Fuel Policy (2003) mandated that all new four-wheeled vehicles in 11 cities meet Bharat Stage III emission norms for conventional air pollutants (similar to Euro III emission norms) and comply with Euro IV standards by 2010.
The Auto Fuel Vision and Policy 2025 was published in May 2014 to update the 2003 document with more stringent fuel and emissions standards.
In October 2007, India's cabinet made a series of announcements regarding ethanol production and proposed an indicative target of 20% blending of biofuels, by 2017, both for bio-diesel and bio-ethanol.
A National Policy on Biofuels outlining the same target was approved by government in December 2009. In order to avoid a conflict between energy security and food security, the policy promotes only fuels derived from non-edible plants, waste, degraded or marginal lands. The policy offers farmers and cultivators a minimum support price for non-edible oil seeds, as well as a minimum purchase price for fuel.
The government is formulating a national policy on biofuels to introduce financial incentives, develop R&D for production and commercialisation of ethanol and jatropha and establish a national biofuel development board.
The policy set a uniform price of INR21.50 (USD0.35) per litre for ethanol. Since October 2007, 5% blending of ethanol with petrol has been mandatory, increasing to 10% from October 2008.
At the direction of the Prime Minister and Deputy Chair of the Planning Commission, an expert committee was established to develop a comprehensive energy policy in 2004. The Integrated Energy Policy, released in August 2006, addresses all aspects of energy, including energy security, access and availability, affordability and pricing, efficiency and the environment.
The Policy aims to meet energy demand 'at the least cost in a technically efficient, economically viable and environmentally sustainable manner'. It contains a number of policies that contribute to avoiding GHG emissions. It received Cabinet approval in 2008.
In relation to renewable energy, the policy proposed:
â€¢ The phase-out of capital subsidies by the end of the 10th Plan linked to creation of renewable grid power capacity
â€¢ Requiring power regulators to seek alternative incentive structures that encourage utilities to integrate wind, small hydro, cogeneration and so on into their systems, and the linking of all such incentives to energy generated as opposed to capacity created
â€¢ Requiring power regulators to mandate feed-in laws for renewable energy, where appropriate, as provided under the Electricity Act 2003. The policy also made a range of more specific recommendations in relation to particular renewable energy sources, including mini hydro, wind and wood gasification power
The Energy Co-ordination Committee (under the chairmanship of the prime minister) oversees implementation of the policy.
Among other goals, this policy stressed the need for the promotion of non-conventional energy sources.
The policy noted the need to reduce the capital cost of projects based on non-conventional and renewable sources of energy; stressed the importance of promoting competition among renewables projects; provided for state electricity regulatory commissions to increase progressively the share of electricity that must be purchased from non-conventional resources, and further provided that the purchase of such electricity should be conducted via a competitive bidding process; suggests tax neutrality across energy sources; states that 'maximum emphasis' would be put on the development of hydro-power. Use of thermal power could be made cleaner by using low-ash coal, improving lignite mining, and through increased use of natural gas and nuclear power. It also calls for the use of the most efficient technologies and more funding for R&D; emphasises the need for conservation and demand-side management including a national awareness campaign.