New Delhi: The Ministry of Heavy Industries (MHI) has introduced a new Phased Manufacturing Program (PMP) for electric vehicle (EV) charger components, aligning with the FAME India Scheme Phase-II to promote domestic manufacturing.
In a notification dated November 7, 2023, the government has listed various charger components and specified timelines for their indigenization, signaling a shift toward domestically produced parts. This includes crucial elements such as charger enclosures, internal wiring harnesses, and software for charge point operators (CPO) and management systems (CMS), effective from December 1, 2021. More intricate components like power electronics and different types of charging guns are scheduled for domestic production by January 2023 and June 2024, respectively.
Under the new policy, EV charger manufacturers seeking eligibility under the FAME-II scheme must achieve a minimum of 50% domestic value addition by December 1, 2024. This calculation is based on the ex-factory price of the charger minus the value of imported components, ensuring a substantial portion of the manufacturing value chain stays within the country.
The initiative aims to encourage the establishment of additional public EV charging stations, addressing a current bottleneck in EV adoption related to consumer range anxiety. By setting a timeline for indigenous manufacturing, the government intends to decrease import reliance and promote a self-sufficient ecosystem for EV infrastructure.
To enforce compliance, financial claims of domestic value addition must be supported by audited financial statements and verified by the testing agency of the Ministry of Heavy Industries.
According to Saurav Anand of ET Energy, “this detailed manufacturing roadmap is anticipated to not only stimulate the local automotive parts industry but also align with the government’s broader objectives of environmental sustainability and reducing dependence on fossil fuels”.
“The directive, approved by the competent authority, aligns with the Government of India’s vision of achieving greater self-reliance and boosting the domestic manufacturing sector as outlined in the ‘Make in India‘ initiative,” Anand added in the report.