Maarg Manthan · Topic 12.9

National Electric Mobility Mission Plan (NEMMP)

Current Affairs & Government Schemes › Energy and Renewable Energy Schemes · Topic 12.9

The National Electric Mobility Mission Plan, or NEMMP 2020, is the Government of India roadmap launched on 9 January 2013 by the Department of Heavy Industries to speed up the adoption of hybrid and electric vehicles and their manufacture in India. It aimed at 6 to 7 million hybrid and electric vehicles on the road by 2020, along with fuel savings and lower emissions, and it set up the National Council for Electric Mobility and the National Board for Electric Mobility to guide the work. Its demand incentive arm, FAME India, started in April 2015. The 2020 target was not met, and later schemes such as PM E-DRIVE carry the effort forward.

5 min read · UPSC Prelims · Current Affairs & Government Schemes · Energy and Renewable Energy Schemes

At a Glance

Launched 9 January 2013
Department Heavy Industries
Target 6 to 7 million hybrid and electric vehicles by 2020
Institutions National Council and National Board for Electric Mobility
Demand arm FAME India from April 2015
Exam link UPSC Prelims, Current Affairs and Government Schemes: Energy and Renewable Energy Schemes

Where Does It Fit?

This topic gives the policy vision for electric vehicles in the macro on energy. It explains why the later subsidy schemes exist, and the next topic covers FAME India, the money schemes that grew out of this plan. Previous topic: National Programme on Biogas and Bio-Manure. Next topic: FAME India Scheme (Electric Vehicles).

What Did NEMMP 2020 Set Out to Do?

Item	Details
Launch	9 January 2013 by the Prime Minister, after approval in 2012
Nodal body	Department of Heavy Industries, Ministry of Heavy Industries and Public Enterprises
Vehicle target	6 to 7 million hybrid and electric vehicles on the road by 2020, as a national target
Fuel savings goal	Savings of about 2.2 to 2.5 million tonnes of liquid fuel by 2020, along with lower carbon emissions
Four pillars	Demand creation, supply side support for manufacturers, research and development, and charging infrastructure
Governance	National Council for Electric Mobility, chaired by the Prime Minister, and the National Board for Electric Mobility, chaired by the Minister of Heavy Industries

What Policy Tools Followed from NEMMP?

Demand incentives: subsidies on purchase and lower taxes were meant to bring down the high upfront cost of electric vehicles
FAME India Phase I: Faster Adoption and Manufacturing of Hybrid and Electric Vehicles, started on 1 April 2015 as the first phase under the plan, with Rs 895 crore
Research and development: support for battery technology, motors and power electronics through centres and industry
Charging infrastructure: plans for public charging stations and for common standards to make charging easy
Government fleet: a plan for governments and public agencies to buy electric vehicles in large numbers through bulk deals
Tax support: lower goods and services tax on electric vehicles at 5 percent and tax relief on loans for purchase
Manufacturing incentives: Production Linked Incentive schemes for automobiles and for advanced chemistry cell batteries came later
Sibling topic: the subsidy schemes themselves are covered in FAME India Scheme (Electric Vehicles)

What Else Should You Remember?

Reason for the plan: India imports most of its crude oil, and road transport is a major user of fuel and a source of urban air pollution
Energy security: electrifying transport lowers oil imports if the electricity comes from low carbon sources
Air quality link: electric vehicles cut tailpipe pollution in cities, which supports programmes such as National Clean Air Programme (NCAP)
Hybrid and electric: the plan covers mild and strong hybrids, plug-in hybrids and full battery electric vehicles
Outcome by 2020: the 6 to 7 million target was not met, because sales stayed in the hundreds of thousands a year by 2020, mostly two and three wheelers
Reasons for the shortfall: high battery cost, few charging points, low consumer awareness, limited models and slow release of subsidies
Phase scheme: the plan was followed by FAME II from April 2019, then an interim scheme in 2024, and PM E-DRIVE from October 2024
PM E-DRIVE: the Prime Minister Electric Drive Revolution in Innovative Vehicle Enhancement Scheme was notified in September 2024, and was reported to be extended to March 2028, with a widely cited outlay of about Rs 10,900 crore
Battery makers: India depends on imports for lithium ion cells, which is why domestic cell manufacturing is a priority
Battery swapping: a policy on battery swapping was announced to reduce charging time and cost
State policies: many States such as Delhi, Maharashtra and Tamil Nadu have their own electric vehicle policies with extra subsidy and road tax waiver
Critical minerals: lithium, cobalt and nickel supply is a strategic concern, and India has set up a mission on critical minerals to secure it

Why Does It Matter for the Exam?

Basics: launch date, department and target
Institutions: the National Council and the National Board for Electric Mobility and their heads
Link with FAME: FAME is the demand incentive arm of NEMMP
Later schemes: FAME II in 2019 and PM E-DRIVE in 2024
Common errors: giving the Ministry of Road Transport as the nodal ministry, or saying the 2020 target was met

As an analytical point, NEMMP showed that a target without a funded, steady subsidy and charging network does not shift the market. Later schemes learned that lesson by focusing on two and three wheelers and buses, which give the biggest gain for the money.

Why Is This Topic Important?

Basics Date, target, department
Institutions Council and Board
Outcome Missed target and later schemes

What Came Next?

The next topic covers the FAME India subsidy scheme and its successor. Next topic: FAME India Scheme (Electric Vehicles).

Key People and Terms

NEMMP National Electric Mobility Mission Plan
NCEM National Council for Electric Mobility
NBEM National Board for Electric Mobility
FAME Faster Adoption and Manufacturing of Hybrid and Electric Vehicles
Hybrid vehicle Vehicle with engine and electric motor
ACC battery Advanced Chemistry Cell battery

Exam Corner

Points to Remember

Launched 9 January 2013; Heavy Industries.
Target: 6 to 7 million vehicles by 2020.
NCEM chaired by the Prime Minister.
FAME India began April 2015.
Target not met.

Do Not Confuse With

NEMMP and FAME The overall plan versus its subsidy scheme
NCEM and NBEM Prime Minister level council versus ministerial board
Hybrid and battery electric vehicles Engine plus motor versus battery only

Memory Hook

Thirteen: plan for six to seven million by twenty-twenty; FAME followed in fifteen.

Mains Angle

Questions ask why electric vehicle targets were missed and what a better policy looks like. These points give a balanced frame.

Aims Energy security, clean air, industry
Gaps Costs, charging, consistency
Way forward Batteries, targeted subsidy, charging network

A Question You May Face

An original practice question, not a past paper question.

“Why did India miss the targets of the National Electric Mobility Mission Plan, and how can electric vehicle adoption be accelerated?”

How to Answer

Aim Electric mobility by 2020.
Tools FAME and R&D.
Gaps Cost and charging.
Way Batteries and targeted support.

GS Relevance

Prelims: launch, ministry, target, institutions, link with FAME. GS Paper 3: energy security, transport, climate change, manufacturing and technology.

Frequently Asked Questions

What is the National Electric Mobility Mission Plan?

The National Electric Mobility Mission Plan, or NEMMP 2020, is a roadmap launched on 9 January 2013 by the Department of Heavy Industries to promote hybrid and electric vehicles. It targeted 6 to 7 million vehicles by 2020 and covered demand creation, manufacturing support, research and charging infrastructure.

Which department runs NEMMP?

The Department of Heavy Industries under the Ministry of Heavy Industries runs NEMMP. The National Council for Electric Mobility, chaired by the Prime Minister, gives guidance, and the National Board for Electric Mobility chaired by the Minister of Heavy Industries oversees implementation and coordination with other ministries.

What was the target of NEMMP 2020?

The target was 6 to 7 million hybrid and electric vehicles on Indian roads by 2020, with fuel savings of about 2.2 to 2.5 million tonnes and lower emissions. The target was not met because of high costs, few charging stations, limited models and delays in releasing subsidies.

How is NEMMP related to FAME India?

FAME India, or Faster Adoption and Manufacturing of Hybrid and Electric Vehicles, is the demand incentive part of NEMMP. Phase I began on 1 April 2015 with Rs 895 crore, and Phase II followed in April 2019 with a larger outlay, giving subsidy on purchase and funding charging stations.

What is the latest status of NEMMP?

NEMMP 2020 has run its course and its target year has passed without the goal being met. Its work is now carried by later schemes, mainly PM E-DRIVE, which was notified in September 2024 and reported to be extended to March 2028. Check the Ministry of Heavy Industries for current scheme details.

PYQ Practice — Statement Analysis

1 NEMMP 2020 was launched in January 2013.

True

The date was 9 January 2013.

2 The National Council for Electric Mobility is chaired by the Minister of Heavy Industries.

False

The Prime Minister chairs it. The Minister chairs the Board.

3 FAME India is the demand incentive part of NEMMP.