The Indian central government's ambitious electric vehicles project will take off soon
as the Indian Space Research Organisation (Isro) has approved commercial use of lithium-ion
battery technology.
The glitch is companies will be required to pay 1 crore rupees for the technology to Isro
for every type of e-vehicle.
Commercialisation of Isro's technology could save 10-15 percent cost of e-vehicles.
However, some experts said that the electric vehicle technology is still in the development
stage and the cost is substantially higher.
Besides, the ecosystem for e-vehicles is not yet ready.
"Charging stations are not in place, the cost of the battery itself is high.
The cost of an electric bus is approximately 1.5 crore rupees while the cost of diesel
bus is just 20-50 lakh rupees.
Another concern is the flammability of the lithium-ion battery.
In view of weather conditions, this is a technological challenge and cooling the battery will raise
operational costs.
Expert also said that the Electric vehicles, in view of their cost, will justify deployment
only as public transport buses, taxis and three-wheelers.
"Creating demand for e-vehicles is important.
Get private investors in through some incentives.
ISRO and BHEL have tied up to help develop low-cost lithium-ion batteries for electric
vehicles.
Tesla founder Elon Musk already said that the company might set up a factory in India
to make lithium-ion batteries.
"Given the high local demand, a factory in India would probably make sense in the
long-term.
A lithium-ion battery factory will bring down prices and increase mass adoption, crucial
for storage of renewable energy generated through solar or wind power.
Though the company also announced it would set up an electric car unit.
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