Latest news with #HemantMallya
Mint
21 hours ago
- Automotive
- Mint
EV vs Petrol: Electric vehicles prove cheaper to run in India, says CEEW study
As India's vehicle population is set to more than double by 2050, a new study by the Council on Energy, Environment and Water (CEEW) has highlighted a significant shift in cost competitiveness between electric and petrol vehicles. The research shows that electric vehicles (EVs), particularly in the two- and three-wheeler categories, now offer a markedly lower total cost of ownership (TCO) compared to their petrol counterparts, a trend that could redefine the future of personal and commercial mobility in the country. According to the CEEW, electric two-wheelers are already the most economical option on Indian roads, costing just ₹ 1.48 per kilometre to operate, compared to ₹ 2.46 for petrol-powered versions. The advantage is even starker in the three-wheeler segment, where EVs cost ₹ 1.28/km versus ₹ 3.21/km for petrol-driven models. Commercial taxis, where operating costs heavily influence purchasing decisions, also stand to benefit significantly from the EV transition. 'Electric two- and three-wheelers are not just greener, but cheaper to run than petrol models. These segments are ripe for rapid electrification,' said Hemant Mallya, Fellow at CEEW. 'Cost advantages, especially in daily-use scenarios, will likely drive adoption faster in states that offer supportive policies.' The report attributes the shift in TCO dynamics to a combination of declining battery costs, supportive state-level incentives, and improved charging infrastructure. However, the cost competitiveness for private electric cars remains mixed across regions. Variations in state subsidies, electricity tariffs, and initial vehicle prices continue to affect affordability, the study notes. Despite the strong performance of EVs in the lighter vehicle categories, the report finds that electrification in heavier commercial vehicles, such as trucks and buses, lags behind. In 2024, electric medium and heavy goods vehicles remain costlier than those running on diesel, CNG, or LNG. With LNG expected to remain the cheapest fuel option for heavy transport until at least 2040, the study stresses the need for targeted research, infrastructure investments, and cost-reduction strategies to enable a transition in this segment. Without significant progress in electrification and green fuel adoption, diesel is projected to remain dominant in India's road transport sector until the late 2040s. Under a business-as-usual scenario, diesel demand would peak only by 2047, while petrol demand could peak earlier around 2032. Dr Himani Jain, Senior Programme Lead at CEEW, emphasised the broader implications: 'India's transport sector is at the crossroads of an energy, emissions, and urban planning challenge. Rising ownership and usage patterns will only increase congestion and environmental impact if we don't act now. We must prioritise clean, efficient, and cost-effective transport systems.' To manage the evolving cost landscape, the study recommends enhancing access to EV financing, particularly through public banks and non-banking financial companies (NBFCs). Innovative battery rental or EMI-based models could make upfront costs more manageable. In parallel, better data on vehicle ownership at the district level—especially via the VAHAN portal—will help target incentives and infrastructure planning more effectively. As India steers towards a low-carbon future, aligning fuel economics with sustainability goals will be key. The CEEW's Transportation Fuel Forecasting Model (TFFM), which enables granular projections of vehicle stock and energy demand at the district level, is expected to be a critical tool for policymakers, automakers, and energy providers alike.
Hans India
03-05-2025
- Business
- Hans India
Existing state-level policies could further unlock USD 61 billion in incentives for Green Hydrogen in India
India's green hydrogen industry could unlock an additional INR ~5 lakh crore (USD 61 billion) through already existing state-level policies, finds a new independent study released today by the Council on Energy, Environment and Energy (CEEW). The study, supported by the Ministry of New and Renewable Energy (MNRE), also found that this potential support, embedded across policies in 12 states, complements the central outlay of the ambitious National Green Hydrogen Mission (NGHM). It can be a game-changer for scaling domestic production and export for green hydrogen. CEEW's study, Augmenting the National Green Hydrogen Mission: Assessing the Potential Financial Support through Policies in India, evaluates how state-level provisions complement the NGHM's market development outlay and the Ministry of Power's Green Hydrogen Policy. Green hydrogen is key to decarbonising hard-to-abate heavy industries. As a clean energy carrier, it can also power heavy road vehicles, ships and aircraft, and can be used as a long-duration energy storage solution. CEEW's study reveals that just seven states—Odisha, Maharashtra, Tamil Nadu, Uttar Pradesh, Rajasthan, Andhra Pradesh, and Gujarat—account for 92 per cent of the total estimated state-level support, underlining their central role in shaping India's green hydrogen ecosystem. If fully leveraged, these incentives could help meet India's 5 million tonnes annual production target by 2030, along with the additional state-level targets. The study measures both power-related and non-power-related support, including capital subsidies, interest subvention, state GST reimbursement, and exemptions on electricity duty, transmission, and wheeling charges. Nearly 63 per cent of the total support—equivalent to INR 3.12 lakh crore (USD 38 billion)—is power-related, highlighting the crucial link between low-cost renewable electricity and green hydrogen viability. Hemant Mallya, Fellow, CEEW, said, 'India has set one of the world's highest green hydrogen targets, backed by central and state-level policies offering financial incentives. The CEEW study aims to inform industrial and financial sector stakeholders about the extent of governmental support available for green hydrogen projects. By quantifying monetary incentives—including budgetary provisions and exemptions—the report emphasizes India's attractiveness as an investment destination for green hydrogen. Faster, standardised clearances through centre–state coordination will be key towards supporting the National Green Hydrogen Mission's vision of positioning the country to lead in green hydrogen production and exports.' With policies in place and support quantified, the next phase of India's green hydrogen journey hinges on execution. Power-related incentives, especially interstate open access, will enhance India's cost-competitiveness in green hydrogen. Industry must now act—by leveraging these incentives to build projects on the ground for both domestic use and exports.
