The Ministry of Heavy Industries (MHI) has unveiled a phased manufacturing program (PMP) outlined in a notification dated November 7, 2023. This initiative, aligned with the FAME India Scheme Phase II, aims to accelerate the indigenization of electric vehicle charger components, thereby fostering domestic manufacturing.
Effective from December 1, 2021, the government mandates the immediate indigenization of crucial components such as charger enclosures, internal wiring harnesses, and software for charge point operators (CPO) and management systems (CMS). The subsequent phases set ambitious timelines for the localization of more intricate parts, including power electronics by January 2023 and various charging guns by June 2024.
To qualify under the FAME II scheme, EV charger manufacturers must achieve a minimum of 50% domestic value addition by December 1, 2024. This calculation, based on the ex-factory price minus the value of imported components, ensures a substantial portion of the manufacturing value chain remains within the country. The policy aims to alleviate range anxiety among consumers by incentivizing the establishment of more public EV charging stations.
Compliance with these regulations will be scrutinized through audited financial statements and verification by the testing agency of the Ministry of Heavy Industries. The meticulous manufacturing roadmap not only anticipates bolstering the local automotive parts industry but also aligns with the government’s broader objectives of environmental sustainability and reducing fossil fuel dependence.
This directive, endorsed by the competent authority, mirrors the Government of India’s vision outlined in the ‘Make in India’ initiative. By promoting self-reliance and boosting the domestic manufacturing sector, the government seeks to establish a self-sufficient ecosystem for EV infrastructure, furthering the nation’s strides toward a sustainable and eco-friendly future.