Cement Manufacturers Association (CMA)

47 6.3 Policy and Regulatory Gaps The FAME-II scheme (FY2019–FY2024), with ₹11,500 crore budgetary support, catalysed deployment of 18.84 lakh EVs—predominantly passenger and light commercial vehicles—by June 2025 [7]. However, construction and mining equipment was only formally notified under AIS- 174 specifications in November 2024 [8], creating a multi-year exclusion of heavy mining equipment from incentive frameworks. The successor EMPS 2024 scheme (₹778 crore, April–September 2024) maintained this gap. Charging infrastructure deployment—9,332 stations sanctioned, 8,885 installed nationally [7]—remains entirely oriented toward road transport, with no mining-site-specific provisions. 7. Policy Framework and Required Interventions 7.1 Existing Policy Architecture India's EV policy ecosystem, while increasingly sophisticated, has been designed primarily around passenger vehicles and light commercial freight. The National Electric Mobility Mission Plan (NEMMP), FAME I and II, the PM e- Drive Scheme, and India's Long-Term Low- Carbon Development Strategy collectively form a foundation, but contain structural gaps with respect to mining equipment [15]. The PLI scheme for Advanced Chemistry Cells (ACC), with ₹18,100 crore allocation, is the most directly relevant initiative for addressing battery cost and import dependency. Table 7: Priority Policy Interventions for Mining EV Transition Policy Intervention Specific Requirement Priority Estimated Impact Mining-specific EV subsidy Dedicated scheme covering dump trucks, loaders, drills >10T Critical High – addresses upfront cost barrier Battery localisation incentive Extend ACC PLI to mining- grade LFP/NMC packs; BMS R&D grants Critical High – reduces import dependency VGF extension Extend NHEV VGF model to captive mine fleet deployment High High – de-risks project financing MW -class charging mandate Require MW-class depot charging in new mine lease approvals Critical High – removes infrastructure bottleneck GST rationalisation Reduce GST on mining EVs and battery components from 28% to 5% High Medium – improves TCO Carbon pricing pilot Sector-specific carbon levy on mine diesel; revenue recycled to EV Medium Long-term – changes relative economics EV fleet quota for leases Mandate ≥20% electric fleet share in new mining lease conditions Medium Medium – creates demand certainty Green financing guarantees DFI first-loss guarantee for banks financing mining Evs High High – unlocks commercial debt Battery second-life regulation Establish battery passport and repurposing framework Low Medium – improves resale economics AIS standards for mine Evs Publish AIS specifications for heavy mining electric equipment High Medium – enables type approval