Kerala's draft electric vehicle policy gives leg up for private company

Kerala's draft electric vehicle policy gives leg up for private company
Electric vehicle

Kochi: The Kerala government’s draft policy on electric vehicles (EV), which recently got the finance department's nod, is heavily favouring a private company when it comes to supply and recharge of batteries.

As per the draft policy, a Bengaluru-based firm will get a monopoly to supply batteries used in electric automobiles, and also the rights to put in place requisite facilities to recharge them.

Moreover, the company would be following the swapping scheme whereby the vehicles owners would be getting another battery which has been recharged rather than the one that has been given for recharging. This has been a failure across the globe. The main contention against this practice is that the battery given to the vehicle owner while recharging may not be safe, and questions are also raised about the warranty of the battery.

Plans are afoot to establish 150 swapping stations in the state to exchange the batteries, according to the draft policy. And the automakers should provide the company with batteries that are compatible with the vehicles sold by them.

The state government is planning to have close to 10 lakh EVs, including 2 lakh two-wheelers, 50,000 three-wheelers, 3,000 buses and 1,000 trucks, on Kerala roads by 2022.

Another stumbling block is the obsolete lithium-ferrous-phosphate technology used for the production of batteries.

This is the only company that produces swapping batteries by assembling parts imported from China. As the batteries are supplied by the firm, it should also be given the rights to operate the 150 swapping stations coming up in the state. This is akin to giving a firm the consent to supply engines to automakers, and the licence to run the petrol bunks too.

The draft policy also states that the KSEB would open 20 charging stations. Another question being raised is that could it be better if the KSEB ran all the charging stations, whereby all batteries could be recharged at these points, rather than giving a private company the nod to start 150 swapping stations?

Benefit of subsidy

The government has proposed a tax holiday of three years for the EV project, and the subsidies could be provided to EV automakers and battery manufacturers. The lithium-nickel-manganese-cobalt batteries are much better than the lithium-ferrous-phosphate batteries, and in two years’ time sodium-iron batteries, which are superior to others, will be introduced in the EV market.

But, unfortunately, the draft policy is giving monopoly to a private company to supply batteries based on obsolete technology.

The draft policy, after considering suggestions from various quarters, will be presented in the Assembly within a month.

Experts have pointed that the pitfalls in the draft policy would only lead to corruption and controversies.

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