NITI Aayog CEO Amitabh Kant confident of meeting the target of raising Rs 88,000 crore asset monetization this financial year. In an interview to TOI’s Surojit Gupta and Siddharth, Kant details the transition strategy to electric mobility and the need for government departments to step up capital spending. Part:
Electric mobility is one of the major themes of the budget. What are the next steps on this?
A comprehensive support system, covering various key areas of the EV ecosystem – manufacturing, demand generation, regulatory framework, specifications and standards, charging infrastructure, research and development, all focused under the National Mission for Transformational Mobility which has been placed in NITI Aayog.
We have seen tremendous response to achieve the National Program on Advanced Cell Chemical Battery Storage production 50 GW capacity. We received responses from 10 bidders for 130 GW – this is much higher than our expectations. Secondly, the Production Linked Incentive (PLI) scheme for the automobile and automobile component industry is directed towards electric vehicles and will bring in fresh investments of over Rs 43,000 crore. This PLI has also received tremendous response. We will facilitate the transition of industries towards EV and new technologies.
More than 27 states have gone ahead in formulating state EV policies and 18 states have notified these policies. To create a support system, nine IITs have come up with programs and centers on clean and sustainable mobility solutions. fame The scheme was completely restructured to reduce the upfront cost of two-wheeler, three-wheeler and electric buses.
We have now made two wheelers and three wheelers cheaper than the combustion engine vehicles. So far 5 lakh electric vehicles have been supported under the FAME scheme. We have also posed a big challenge for 5,585 electric buses including 135 double-decker buses, which some states wanted. This is the largest global tender for electric buses in the world. Another approval has been given for 2,877 chargers in 68 cities across 25 states/UTs and 1,576 EV charging stations on 16 highways and 9 expressways under the FAME scheme.
Apart from this, oil companies are installing 2200 integrated fast charging stations in their retail outlets. We are committed to establish a network of charging stations across all major cities and highways. We have also developed 12 charging standards. We will come up with battery swapping norms and they will be finalized within the next 60 days. NITI Aayog will publish the National Battery Swapping Policy within the next three months. We are committed to promoting clean mobility in India
What are the key elements of this battery swapping policy?
Battery swapping allows you to swap a discharged battery with a charged one to continue your onward journey. This allows the battery and vehicle to be sold separately. In fact, it can reduce vehicle costs by up to 40%, as did one of our startups, Bounce. Thus, the battery itself becomes a separate entity that can be continuously charged and mounted on the vehicle.
These batteries will be interoperable and will have fast charging. The overall goal is to reduce the cost of the vehicle, as well as reduce any time delays caused by battery charging.
What investment are we seeing from battery swapping?
In India, it is our young start-ups who have disrupted the already EV ecosystem, forcing even the established players to go the EV route. If these players do not do so, they will not be able to maintain their market share. It is not the investment in battery swapping that is important, but rather the overall investment in the EV ecosystem.
This EV ecosystem includes investments towards manufacturing, battery storage and charging. The shift from combustion engine vehicles to EVs is inevitable due to falling battery prices. Battery swapping will be a catalyst and facilitator, providing much needed thrust for further adoption.
By when do you think EVs will be around 10-15% of vehicles in India?
Our aim should be to electrify at least 30% of the market by 2030. We aim to have all two wheelers and three wheelers sold in India by 2025, due to low prices.
How important is the announcement made in the budget to improve logistics? How will this work?
Logistics is the backbone of realizing the Atmanirbhar Bharat initiative of the Government of India. Today, it is essential to connect all the players in the logistics chain and the Unified Logistics Interface Platform (ULIP) aims to deliver this. In ULIP, 24 logistics systems of 6 Ministries and Departments have been mapped and integrated through 78 Application Programming Interfaces (APIs), covering 1,454 sectors. NICDC’s Logistics Data Bank (LDB) project has been leveraged to develop ULIPs.
it corresponds to PM speed power, which aims to break down the segregated silos, promote integration among all the ministries and create a single window. So it will be cut across railways, roads, airways, ports and waterways. ULIPs will be a game changer for logistics in India and make India cost competitive globally.
The ULIP program will be used by the government, private sector, service providers and industry bodies. It will be an open and secure delivery platform and will have interoperability, scalability, security and accountability for data exchange. A private sector enterprise would then be able to clearly figure out which transit mode they should choose which is fastest and cheapest. It also provides the time frame for dispatch of their goods.
Each player in the value chain will compete with each other to reduce costs. This will be one of the pioneering initiatives to reduce the cost of logistics in India. There will be unified documents and all the data will be available on real time basis. It will be like UPI for logistics.
PLI has been expanded to include solar cell and module manufacturing. How will this help?
When the PLI was announced by the PM, it was aimed at bringing manufacturing incentives at the center stage to boost India’s growth and generate employment. We are stuck in 14 sectors and we have a total outlay of Rs 1.97 lakh crore. We envisage that this should increase the total production in India by $520 billion. The plan is for a stipulated period of 5 years from the point of investment.
All the schemes launched have received very positive response from the private sector. All these are sunrise areas of development for India. When we were drafting the PLI scheme, the PM’s directive was that we should look at high growth areas and hence we chose those areas where Indian companies can become global champions. These are the areas where demand will increase in India and around the world. We have also selected some employment generating sectors like textiles and food processing.
The budget largely focused on increasing capital expenditure. How do you see the implementation?
India can grow sustainably over a long period of time and grow at high rates only on the strength of good quality infrastructure, and this requires capital expenditure.
This is a very progressive policy adopted by the FM in the budget. He has really challenged all of us in the civil service to make sure that we are able to get the projects ready quickly, we are able to get the land, we are able to get all the approvals and we are able to get the environment. able to obtain approval. Will be able to take the projects on the ground soon. That means we need to start projects, and we need to start projects fast.
All departments will have to play a key role and agencies like NHAI will play a major role. The states which have been given Rs 1 lakh crore will also have to play a very important role. We will soon be in talks with all the state governments and infrastructure departments to undertake asset monetization programs along with the infrastructure development of the state governments.
The private sector has to play an important role in creating good quality infrastructure.
Do you think tax cuts would have helped consumption?
I believe that policies should be predictable and sustained over the long term. The government sharply reduced corporate tax last year and the focus has been on capital expenditure by the government. This focus is so that when the government spends, it crowds out private sector investment and this leads to growth. If we keep tinkering with the direct tax policy on an annual basis through the budget, it will not be a good thing for the country. We don’t need to tinker with our policies. We also need revenue in the long run to ensure the growth and expansion of the country. I believe that corporates should start spending in India and accelerate the pace of spending. Once that happens, and growth is on an ongoing basis, further reforms in direct taxes can be considered.
What progress has been made on asset monetization since last year’s announcement?
Asset monetization is being carried out as a “Whole Government” initiative across diverse sectors of the economy. The indicative value of the core assets of the central sector proposed for demonetisation is INR 6 lakh crore for the financial year 2022 to 2025. This includes assets from sectors such as railways, roads, highways, power generation, coal, mining, transmission, warehousing and hospitality. apart from others.
The target for various ministries is Rs 88,000 crore by March 31 this year. I can assure you that we are fully confident of achieving this goal and exceeding it. Every ministry has worked very honestly and roads, power, coal, mining, city gas distribution have done a good job. We are confident that we will fully achieve our goal. In the coming years, you will soon see a lot of action to bring efficiency through new models like InViTs, REITS and TOT proposals. We need to maintain this on regular basis as operation and maintenance by private sector will bring more efficiency and increase the overall productivity.
Electric mobility is one of the major themes of the budget. What are the next steps on this?
A comprehensive support system, covering various key areas of the EV ecosystem – manufacturing, demand generation, regulatory framework, specifications and standards, charging infrastructure, research and development, all focused under the National Mission for Transformational Mobility which has been placed in NITI Aayog.
We have seen tremendous response to achieve the National Program on Advanced Cell Chemical Battery Storage production 50 GW capacity. We received responses from 10 bidders for 130 GW – this is much higher than our expectations. Secondly, the Production Linked Incentive (PLI) scheme for the automobile and automobile component industry is directed towards electric vehicles and will bring in fresh investments of over Rs 43,000 crore. This PLI has also received tremendous response. We will facilitate the transition of industries towards EV and new technologies.
More than 27 states have gone ahead in formulating state EV policies and 18 states have notified these policies. To create a support system, nine IITs have come up with programs and centers on clean and sustainable mobility solutions. fame The scheme was completely restructured to reduce the upfront cost of two-wheeler, three-wheeler and electric buses.
We have now made two wheelers and three wheelers cheaper than the combustion engine vehicles. So far 5 lakh electric vehicles have been supported under the FAME scheme. We have also posed a big challenge for 5,585 electric buses including 135 double-decker buses, which some states wanted. This is the largest global tender for electric buses in the world. Another approval has been given for 2,877 chargers in 68 cities across 25 states/UTs and 1,576 EV charging stations on 16 highways and 9 expressways under the FAME scheme.
Apart from this, oil companies are installing 2200 integrated fast charging stations in their retail outlets. We are committed to establish a network of charging stations across all major cities and highways. We have also developed 12 charging standards. We will come up with battery swapping norms and they will be finalized within the next 60 days. NITI Aayog will publish the National Battery Swapping Policy within the next three months. We are committed to promoting clean mobility in India
What are the key elements of this battery swapping policy?
Battery swapping allows you to swap a discharged battery with a charged one to continue your onward journey. This allows the battery and vehicle to be sold separately. In fact, it can reduce vehicle costs by up to 40%, as did one of our startups, Bounce. Thus, the battery itself becomes a separate entity that can be continuously charged and mounted on the vehicle.
These batteries will be interoperable and will have fast charging. The overall goal is to reduce the cost of the vehicle, as well as reduce any time delays caused by battery charging.
What investment are we seeing from battery swapping?
In India, it is our young start-ups who have disrupted the already EV ecosystem, forcing even the established players to go the EV route. If these players do not do so, they will not be able to maintain their market share. It is not the investment in battery swapping that is important, but rather the overall investment in the EV ecosystem.
This EV ecosystem includes investments towards manufacturing, battery storage and charging. The shift from combustion engine vehicles to EVs is inevitable due to falling battery prices. Battery swapping will be a catalyst and facilitator, providing much needed thrust for further adoption.
By when do you think EVs will be around 10-15% of vehicles in India?
Our aim should be to electrify at least 30% of the market by 2030. We aim to have all two wheelers and three wheelers sold in India by 2025, due to low prices.
How important is the announcement made in the budget to improve logistics? How will this work?
Logistics is the backbone of realizing the Atmanirbhar Bharat initiative of the Government of India. Today, it is essential to connect all the players in the logistics chain and the Unified Logistics Interface Platform (ULIP) aims to deliver this. In ULIP, 24 logistics systems of 6 Ministries and Departments have been mapped and integrated through 78 Application Programming Interfaces (APIs), covering 1,454 sectors. NICDC’s Logistics Data Bank (LDB) project has been leveraged to develop ULIPs.
it corresponds to PM speed power, which aims to break down the segregated silos, promote integration among all the ministries and create a single window. So it will be cut across railways, roads, airways, ports and waterways. ULIPs will be a game changer for logistics in India and make India cost competitive globally.
The ULIP program will be used by the government, private sector, service providers and industry bodies. It will be an open and secure delivery platform and will have interoperability, scalability, security and accountability for data exchange. A private sector enterprise would then be able to clearly figure out which transit mode they should choose which is fastest and cheapest. It also provides the time frame for dispatch of their goods.
Each player in the value chain will compete with each other to reduce costs. This will be one of the pioneering initiatives to reduce the cost of logistics in India. There will be unified documents and all the data will be available on real time basis. It will be like UPI for logistics.
PLI has been expanded to include solar cell and module manufacturing. How will this help?
When the PLI was announced by the PM, it was aimed at bringing manufacturing incentives at the center stage to boost India’s growth and generate employment. We are stuck in 14 sectors and we have a total outlay of Rs 1.97 lakh crore. We envisage that this should increase the total production in India by $520 billion. The plan is for a stipulated period of 5 years from the point of investment.
All the schemes launched have received very positive response from the private sector. All these are sunrise areas of development for India. When we were drafting the PLI scheme, the PM’s directive was that we should look at high growth areas and hence we chose those areas where Indian companies can become global champions. These are the areas where demand will increase in India and around the world. We have also selected some employment generating sectors like textiles and food processing.
The budget largely focused on increasing capital expenditure. How do you see the implementation?
India can grow sustainably over a long period of time and grow at high rates only on the strength of good quality infrastructure, and this requires capital expenditure.
This is a very progressive policy adopted by the FM in the budget. He has really challenged all of us in the civil service to make sure that we are able to get the projects ready quickly, we are able to get the land, we are able to get all the approvals and we are able to get the environment. able to obtain approval. Will be able to take the projects on the ground soon. That means we need to start projects, and we need to start projects fast.
All departments will have to play a key role and agencies like NHAI will play a major role. The states which have been given Rs 1 lakh crore will also have to play a very important role. We will soon be in talks with all the state governments and infrastructure departments to undertake asset monetization programs along with the infrastructure development of the state governments.
The private sector has to play an important role in creating good quality infrastructure.
Do you think tax cuts would have helped consumption?
I believe that policies should be predictable and sustained over the long term. The government sharply reduced corporate tax last year and the focus has been on capital expenditure by the government. This focus is so that when the government spends, it crowds out private sector investment and this leads to growth. If we keep tinkering with the direct tax policy on an annual basis through the budget, it will not be a good thing for the country. We don’t need to tinker with our policies. We also need revenue in the long run to ensure the growth and expansion of the country. I believe that corporates should start spending in India and accelerate the pace of spending. Once that happens, and growth is on an ongoing basis, further reforms in direct taxes can be considered.
What progress has been made on asset monetization since last year’s announcement?
Asset monetization is being carried out as a “Whole Government” initiative across diverse sectors of the economy. The indicative value of the core assets of the central sector proposed for demonetisation is INR 6 lakh crore for the financial year 2022 to 2025. This includes assets from sectors such as railways, roads, highways, power generation, coal, mining, transmission, warehousing and hospitality. apart from others.
The target for various ministries is Rs 88,000 crore by March 31 this year. I can assure you that we are fully confident of achieving this goal and exceeding it. Every ministry has worked very honestly and roads, power, coal, mining, city gas distribution have done a good job. We are confident that we will fully achieve our goal. In the coming years, you will soon see a lot of action to bring efficiency through new models like InViTs, REITS and TOT proposals. We need to maintain this on regular basis as operation and maintenance by private sector will bring more efficiency and increase the overall productivity.
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