Archive for ‘India alert’

06/07/2019

New Delhi and Beijing cannot let differences turn into disputes: India’s ambassador to China

  • Ambassador Vikram Misri has called on China to balance its US$60 billion trade deficit with India ‘before the issue becomes politically sensitive’
  • He also says India will not take sides over its use of US-blacklisted Huawei, as ‘any decision taken over this will only be taken in our national interest’
Indian ambassador to China Vikram Misri says that while the countries’ differences will not derail ties, there are still thorny issues to grapple with. Photo: CGTN
Indian ambassador to China Vikram Misri says that while the countries’ differences will not derail ties, there are still thorny issues to grapple with. Photo: CGTN
India and China must actively manage their differences

so they do not get in the way of the Asian superpowers working together for global stability, India’s top diplomat in China said on Friday.

To emphasise his point, Ambassador Vikram Misri listed eight long-standing and new bilateral issues that required attention, including 
India

’s almost US$60 billion trade deficit with China, cooperation on counterterrorism and a

peaceful resolution to their border dispute

.

“This trade imbalance is not economically sustainable in the long run,” said Misri at an Asia Society event in Hong Kong. “It is in our mutual interest to find workable solutions before the markets react in unpredictable ways and the issue becomes politically sensitive.”
Frosty ties between two of the world’s largest economies have thawed in the past year following a 73-day 
military stand-off in the Himalayas

in 2017, with Beijing seeking to forge closer ties with New Delhi amid its ongoing trade and tech war with the United States.

Ivanka Trump, the unlikely messenger of India-US relations
In May, Beijing dropped its long-held objections towards United Nations sanctions on

Masood Azhar

, the founder and leader of terrorist group Jaish-e-Mohammed, which was behind the suicide bombing of Indian soldiers that brought India and Pakistan to the brink of war earlier this year.

Analysts said this would pave the way for a better relationship between India and China.
Misri said both countries enjoyed a “full-spectrum relationship” of economic, commercial and people-to-people ties, and this was reinforced by the “strong personal bond” Indian Prime Minister

Narendra Modi

and Chinese President

Xi Jinping

had, despite the “elements of competition”.

The leaders of the two nations met four times last year and twice in 2019, with Xi set to visit India later this year. Both men share an understanding that “our rise can be mutually reinforcing” and a mutual interest in “preventing differences from turning into disputes”, the ambassador added.

But while Misri, a career diplomat posted to Beijing at the start of this year, stressed that differences would not derail ties, he made no bones about the thorny issues both sides are grappling with.

Will Modi’s snub of Xi’s belt and road derail China-India ties?
Both nations are still engaged in the second of a three-stage process to settle their border dispute – the world’s largest in terms of area, he said.
The first stage was an agreement on the political parameters for a boundary settlement in 2005. The current stage involves agreeing on a framework for a boundary settlement, which Misri said would be translated “into a delineated and demarcated boundary” in the final stage.
Communication over water and shared rivers has also been a key area of cooperation for the two nations.
Indian ambassador to China Vikram Misri speaking at the Asia Society in Hong Kong. Photo: Asia Society
Indian ambassador to China Vikram Misri speaking at the Asia Society in Hong Kong. Photo: Asia Society

They have established channels for information sharing on cross-frontier rivers, which last year enabled the Chinese side to warn the relevant Indian authorities of a landslide which would send a large amount of water to India. While in this instance the two sides were able to avert a loss of life, they can do more to broaden cooperation, Misri said.

He alluded to how China and India are vying for influence in the Indian Ocean, saying it was an area where both had “contiguous zones of maritime interest”.

The two sides need to work together to preserve peace and stability in the Indo-Pacific region – which stretches from the Indian Ocean to the central Pacific Ocean – and ensure transparent economic and commercial cooperation, infrastructure and connectivity, he said.

As China, India and Russia draw close, has Trump overplayed his hand?

Misri, who served as the private secretary to Modi as well as former prime ministers Manmohan Singh and I.K. Gujral, said there were three areas of mutual interest for India and China.

Besides a “peaceful periphery”, they should cooperate to ensure there are open international systems regarding trade and technology, and that global governance is reformed so the voices of nations such as theirs can be heard.

The Russia-India-China trilateral meeting on the sidelines of last month’s 

G20

summit in Osaka, where leaders discussed issues ranging from energy security to climate change, was an opportunity to discuss alternative viewpoints on changing international issues.

This was crucial amid the economic instability caused by 
US-China trade tensions

, that were causing “generalised damage” to the global economy, Misri said.

In the question and answer session with the event’s 112 attendees, Misri was asked if India was feeling the pressure to choose in the face of US efforts to get its allies to reconsider using or ban Chinese tech firm 
Huawei

from their superfast 5G networks.

Washington says Huawei equipment could be used by Beijing for spying and the US Commerce Department has placed the company on its entity list, effectively banning US companies from selling equipment and components to it.
When US President 
Donald Trump

and Xi met at the G20 summit, Trump announced American companies could resume sales to Huawei as long as the products involved did not threaten national security.

Misri referred to this, and said: “Let’s see how it shapes up.”
He added the issue was far from decided for India as it had only achieved 4G connectivity recently and was not yet ready to build out its 
5G

infrastructure.

Still, he said, “there’s no question on taking sides over this”. “Our leadership is very clear that any decision taken over this will only be taken in our national interest.”
Source: SCMP
04/07/2019

Sri Lanka could help Chinese manufacturers offset trade war impact

  • Development minister leads high-level investment forum in Beijing
  • Points to free trade agreements and preferential duty deals to offset trade war pressures for Chinese factories
Sri Lankan Minister for Development Strategies and International Trade Malik Samarawickrama at the Sri Lanka Investment Forum in Beijing on Wednesday. Photo: Simon Song
Sri Lankan Minister for Development Strategies and International Trade Malik Samarawickrama at the Sri Lanka Investment Forum in Beijing on Wednesday. Photo: Simon Song
Sri Lanka is wooing Chinese manufacturers, urging them to make use of its preferential duty-free treatment by the US and Europe as a way to offset the growing tariff pressure of the trade war.
The country’s development minister, Malik Samarawickrama, was in Beijing on Wednesday as part of an investment forum at the Sri Lankan embassy attended by dozens of Chinese businesspeople.
“China has invested heavily in infrastructure and they are assisting us to invest in ports, roads, railways, water supplies and so on. Now we would like China to get involved in setting up their manufacturing plants in Sri Lanka, primarily for the purpose of exports,” he said.
“They can make use of the preferential market access we have – we have duty free access to the European Union countries and we have free trade agreements with Pakistan, Singapore and India. And, since the cost of manufacturing in China is going up, we would like the Chinese to look at Sri Lanka for their manufacturing and we want it to be exported back to China.”
Sri Lanka, bruised from Easter bombings, seeks US$1 billion loan from China
Along with trade officials and diplomats, Samarawickrama, one of Sri Lanka’s most senior government ministers, was also keen to boost investor confidence following the deadly Easter Sunday bombings in Colombo which killed 253 people.
“Let me assure you, absolutely, Sri Lanka is safe for investment,” he told the dozens of representatives from Chinese state-owned and private companies who attended the forum.

“We must bring to your notice that none of the industries have been affected as a result of the bombings and none of the export orders were cancelled or delayed. This is a testament to the resilience of the economy.”

China is one of Sri Lanka’s largest trading partners and – sometimes controversially – the largest financier of its booming new infrastructure. Other big lenders to the island nation are the Asian Development Bank and Japan.

Earlier this year the Sri Lankan government signed a US$989.5 million loan agreement with China’s Export-Import Bank for a major new motorway project. And last month Sri Lanka’s finance ministry confirmed it was in talks with the China-led Asian Infrastructure Investment Bank (AIIB) for a further loan of nearly US$1 billion for energy and motorways.

Did Japan and India just launch a counter to China’s Belt and Road?
The surge of Chinese investment has raised concerns that Sri Lanka could become caught up in the rivalry between China and India as Beijing seeks to expand its influence in South Asia and the Indian Ocean.
Last month, Sri Lanka signed an agreement with India and Japan to jointly develop the East Container Terminal at the Port of Colombo, which some observers said could become a competitor to the China-funded Hambantota Port, and was perhaps a sign that the island nation was seeking to neutralise the growing influence of China.
Samarawickrama denied claims the involvement of Japan and India in Sri Lanka’s biggest port project was to counter China’s influence.
Under the agreement, he said, the terminal was owned by Sri Lanka Port Authority, with a 51 per cent stake, while Japan and India would develop the remaining 49 per cent.
“We need the expertise from Japan,” Samarawickrama said. “We need the Indians to get involved in the operation because 75 per cent of the transshipment cargoes in the Colombo port come from India and India is extremely important to us.
“They are the operators of the terminal and they are not building any ports.”
Source: SCMP
02/07/2019

Heavy rains in India kill 27, cripple financial capital

MUMBAI (Reuters) – Monsoon rains caused wall collapses that killed 27 people in India on Tuesday, as a second day of bad weather disrupted rail and air traffic in the financial capital Mumbai, prompting officials to shut schools and offices, though markets were open.

During every monsoon season, which runs from June to September, India experiences fatal incidents of building and wall collapses as rainfall weakens the foundations of poorly-built structures.
Heavy rain brought a wall crashing down on shanties built on a hill slope in Malad, a western suburb of Mumbai, a fire brigade official said, killing 18 people.
“Rescue work is still going on,” the official added. “So far we have rescued more than two dozen people.”
Three people died when a school wall collapsed in the city of Kalyan, 42 km (26 miles) north of Mumbai.
In the nearby western city of Pune, six people were killed in a wall collapse on Tuesday, a fire brigade official said, after a similar incident on Saturday killed 15.
Mumbai is looking to turn itself into a global financial hub but large parts of the city struggle to cope with annual monsoon rains, as widespread construction and garbage-clogged drains and waterways make it increasingly vulnerable to chaos.
More than 300 mm (11.8 inches) of rain fell over 24 hours in some areas of Mumbai, flooding streets and railway tracks, forcing the suspension of some suburban train services, which millions of commuters ride to work each day.
About 1,000 people stranded in low-lying areas of the city were rescued after a swollen river began to overflow, municipal authorities said.
As weather officials forecast intermittent heavy showers and isolated extremely heavy rainfall, authorities called a holiday for government offices and educational institutions.
“Rain is expected to remain intense even today,” city authorities said on Twitter. “We request you to stay indoors unless there’s an emergency.”
Financial markets were open on Tuesday, though trading volumes were expected to be lower than normal. Many firms asked employees to work from home.
The main runway at Mumbai airport, India’s second biggest, was closed from midnight after a SpiceJet flight overshot the runway while landing, an airport spokeswoman said.
The secondary runway is operational, but 55 flights were diverted and another 52 were cancelled due to bad weather, she said.
In 2005, floods killed more than 500 people in Mumbai, the majority in shantytown slums home to more than half the city’s population.
Source: Reuters
28/06/2019

India arrests after women’s heads shaved for resisting rape

The two women had their heads forcibly shavedImage copyright ANI

Two people have been arrested in India’s Bihar state after a group of men shaved the heads of two women as “punishment” for resisting rape.

The group, which included a local official, ambushed the mother and daughter in their home with the intent of raping them, police said.

When the women resisted, they assaulted them, shaved their heads and paraded them through the village.

Police say they are searching for five others involved in the incident.

“We were beaten with sticks very badly. I have injuries all over my body and my daughter also has some injuries,” the mother told the ANI news agency.

The women also said that their heads were shaved in front of the entire village.

“Some men entered the victims’ home and tried to molest the daughter,” a police officer told local media, adding that her mother helped her fight off the men.

The state’s women commission has also condemned the incident, saying that “further action” will be taken.

This is not the first time such an incident has occurred in the state.

In April, a teenage girl was attacked with acid for resisting an attempted gang rape.

Public outrage over sexual violence in India rose dramatically after the 2012 gang rape and murder of a student on a Delhi bus.

The issue became a political flashpoint again in 2018, after a string of high-profile attacks against children.

However incidents of rape and violence against women continue to be reported from across the country.

Source: The BBC

28/06/2019

India gets 24% below-average rainfall this week – weather office

MUMBAI (Reuters) – India’s monsoon rains were 24% below average in the week ended June 26, the weather office said on Thursday, as the seasonal rainfall was scanty over central and western parts of the country.

The rains are crucial for farm output and economic growth as about 55% of the south Asian nation’s arable land is rain-fed, and the farm sector makes up about 15% of a nearly $2.5-trillion economy that is Asia’s third-biggest.

The below-average rainfall has delayed sowing of summer-sown crop such rice, soybean and corn and threatens to curtail crop yields.

Monsoon has delivered 36% lower-than-normal rainfall since the start of the season on June 1, due to a delay in the onset of monsoon rains, according to data compiled by India Meteorological Department.

Monsoon rains arrived in the southern state of Kerala on June 8. However, Cyclone Vayu developed in the Arabian Sea drew moisture from the monsoon and weakened its progress.

Source: Reuters

27/06/2019

China’s growing demand for clean energy and natural gas sparks contest in the Middle East

  • First Qatar, and now Saudi Arabia, are competing to dominate China’s fast-growing natural gas market, already the third largest in the world, as Beijing encourages the switch from coal to cleaner, greener energy
  • A PetroChina LNG tank at Rudong port in Nantong, Jiangsu province. China’s massive and rapidly growing appetite for natural gas is sparking off a scramble in the Middle East, as energy producers compete to become the biggest player in the market. Photo: Reuters
    A PetroChina LNG tank at Rudong port in Nantong, Jiangsu province. China’s massive and rapidly growing appetite for natural gas is sparking off a scramble in the Middle East, as energy producers compete to become the biggest player in the market. Photo: Reuters
    As more countries turn towards clean energy, the geoeconomic impact of natural gas as a fuel has become second only to that of oil. Over the past decade, the global demand for this carbon-free energy source has risen considerably and one major buyer is China.
    The third largest global market for natural gas, China has implemented government policies to replace the use of coal as fuel and millions of households are switching over to clean energy. Consequently, China’s market for gas expanded by a record 43 billion cubic metres last year to reach 280 billion cubic metres at the end of 2018.
    With the recent

    tax cuts in April

    , China’s gas consumption should continue to grow in the year ahead. As the demand spirals further, natural gas consumption in China is estimated to grow to around 620 billion cubic metres in 2030.

    Prioritising its energy security, Beijing last year approved a 22-year gas supply deal between QatarGas and PetroChina International Co. The agreement is PetroChina’s largest LNG supply deal by volume, and will provide 3.4 million tonnes of liquefied natural gas annually.
    With this deal, which QatarGas initiated with Total and ExxonMobil Corp as partners, Qatar achieved regional dominance and filled a vacuum left by major gas producer Iran, currently the target of US sanctions. Interestingly, Beijing has also unwittingly sparked off a competition between Qatar and Saudi Arabia, the kingpins of the Middle Eastern energy industry.
    A vessel carrying Qatar LNG looking to berth in Shenzhen, China last August. Qatar’s recent deal highlighted the massive and growing Chinese appetite for natural gas. Photo: Reuters
    A vessel carrying Qatar LNG looking to berth in Shenzhen, China last August. Qatar’s recent deal highlighted the massive and growing Chinese appetite for natural gas. Photo: Reuters
    China to become world’s top natural gas importer in 2019: report
    By exporting gas, as well as oil, Qatar sail unruffled through the

    economic and diplomatic boycott

    imposed by Saudi Arabia, the United Arab Emirates, Bahrain and Egypt in June 2017, over allegations that Qatar supports terrorism and is friendly with Iran, which the region sees as an enemy. Qatar denies this. Meantime, Qatar plans to further increase its gas output. To attract more buyers, it is offering attractive long-term supply contracts to other countries in the region.

    Inspired by the success of Qatar Gas, Saudi Arabia has stepped up its efforts to capture this new market. The Saudi state-owned oil giant Aramco plans to build an “energy bridge” between Saudi Arabia and China to better meet Beijing’s growing requirements for oil, gas, including LNG, said Aramco’s chief executive Amin Nasser at an industry event in Beijing in March.

    Aramco, already a major supplier of crude oil to China, would need to invest US$150 billion over the next decade to realise its plans to convert crude oil into chemicals, and eventually become a gas producer. “We need to help our stakeholders – including here in China and the wider Asia region – realise that oil and gas will remain vital to world energy for decades to come,” said Nasser.

    An Aramco employee near an oil tank in Saudi Arabia. Aramco has grand ambitions to become a major producer of natural gas. Photo: Reuters
    An Aramco employee near an oil tank in Saudi Arabia. Aramco has grand ambitions to become a major producer of natural gas. Photo: Reuters

    The vision of Saudi Arabia as a major natural gas producer is in in line with Saudi Crown Prince Mohammed bin Salman’s economic plan Vision 2030. Riyadh has only Qatar to beat, with Iran on the back foot. Under sanctions pressure, Tehran, despite plans to increase gas exports, has clung on to just 1 per cent of the natural gas market, exporting 36.24 million cubic metres daily. Yet Iran was once part of the so-called regional gas troika along with Russia and Qatar, and is located at the cusp of several energy transit corridors. China, defying sanctions, continues to buy oil from Iran.

    In around five years, Riyadh could become a major gas exporter. Saudi Arabia has already replaced Iran as the main energy provider in countries such as China, Pakistan and India, and has made huge investments in energy projects in these countries.

    However, Qatar is also playing smart, sharply lowering its prices to clinch deals and make the right business connections. The competition for the growing natural gas market is a long game. The main possible setback for Riyadh is that its gas reserves do not match those in Qatar and Iran.

    Source: SCMP

26/06/2019

Did the world’s tallest statue bring development to India?

The $430m iconic Statue of Unity in the western state of Gujarat was hailed as a symbol of development in the state. But for those who live near the statue, they’re afraid they will lose their homes and livelihoods.

Source: The BBC

23/06/2019

India rejects U.S. report on attacks on minority Muslims

NEW DELHI (Reuters) – India on Sunday rejected a U.S. State Department’s annual report on religious freedom that raised questions about the government’s inability to curb violent attacks on the country’s minority Muslims.

Preparing for a visit by U.S. Secretary of State Mike Pompeo on Tuesday, India’s foreign ministry issued a stiff rejoinder to the U.S. criticism.

“India is proud of its secular credentials, its status as the largest democracy and a pluralistic society with a longstanding commitment to tolerance and inclusion,” Raveesh Kumar, the ministry’s spokesman, said in a statement.

The State Department report, released on Friday, said some senior officials from Prime Minister Narendra Modi’s ruling Hindu nationalist Bharatiya Janata Party (BJP) last year had made “inflammatory speeches” against religious minorities.

Kumar said India’s constitution guarantees fundamental rights and religious freedom of all citizens, including its minority communities. Muslims make up 14 percent of India’s 1.3 billion people.

“We see no locus standi for a foreign entity to pronounce on the state of our citizens’ constitutionally protected rights,” Kumar said.

The U.S. State Department report examined attacks on minorities during 2018.

“Mob attacks by violent extremist Hindu groups against minority communities, especially Muslims, continued throughout the year amid rumours that victims had traded or killed cows for beef,” the report said.

It also noted reports by non-governmental organisations that the government sometimes failed to act on mob attacks on religious minorities, marginalized communities, and critics of the government.

While in New Delhi, Pompeo is expected to hold talks aimed at laying the ground for a meeting between U.S. President Donald Trump and Modi during a Group of 20 summit in Japan later next week.

Source: Reuters

22/06/2019

Fears for elephants facing 1,900 mile train journey in India

Decorated elephants stand prior to the arrival of Gujarat state Chief Minister, Narendra Modi to offer prayers at the the Lord Jagannath Mandir in Ahmedabad on July 9, 2013Image copyright AFP
Image caption Decorated elephants lead the procession at the Jagannath temple’s annual festival in Ahmedabad

Animal rights activists in India have criticised a plan by the Assam state government to send four elephants on a perilous train journey of more than 3,100km (1,926 miles) to participate in a temple ritual. They say the long journey could be dangerous for the animals and may even kill them, writes the BBC’s Geeta Pandey in Delhi.

The elephants are to be moved from Tinsukia town in the north-eastern state of Assam to the extreme west of the country – Ahmedabad city in Gujarat state.

Reports say the railway authorities in Assam, who have been asked to make travel arrangements for the elephants, are looking for a coach to transport them.

No date is set for their departure yet, but they are expected to reach Ahmedabad before 4 July to participate in the annual Rath Yatra (chariot procession) at the Jagannath temple. The train journey is expected to take three to four days.

In previous years, Prime Minister Narendra Modi, who hails from Gujarat, has participated in the festival and the elephant procession, although temple officials say he’s not expected to attend this year.

Temple trustee Mahendra Jha told BBC Gujarati that they decided to “borrow” the animals from Assam “for two months” because three of their own elephants died from old age last year.

But activists and conservationists say the plan to move the elephants is “cruel and completely inhuman”, especially since temperatures are more than 40C (104F) in many places along the northern Indian route these elephants are expected to take.

Media caption Human-elephant conflict destroying lives in India

“Most of north-western India is reeling under a heatwave. There have been reports of people dying from heat during train journeys,” Kaushik Barua, a wildlife conservationist based in the Assam state capital, Guwahati, told the BBC.

“The wagon in which the elephants will be transported is not climate-controlled. It will be hitched to a passenger train which will be travelling at a speed of 100km/h (62mph), so can you imagine the plight of the animals?”

Mr Barua warns the journey may prove “dangerous” for the animals.

“They can suffer from heatstroke, from shock, and even die.”

Under the law, he says, there’s no problem moving these elephants since all the paperwork is in order, “but where’s the animal welfare?”

Also weighing in on the debate is the opposition Congress party MP from Assam, Gaurav Gogoi, who’s petitioned India’s Environment Minister Prakash Javadekar to intervene.

“Roughly half of the country is struggling through its worst drought in six decades…. These are extreme conditions for the elephants to travel… The elephants may suffer from acute skin infection and dehydration,” Mr Gogoi wrote in his letter on Thursday.

Media caption India’s first elephant hospital is run by the charity Wildlife SOS

“Therefore, I request the central government to intervene and instruct the state government to withdraw the decision as soon as possible.”

Elephants – both wild and captive – are a protected species in India and there are strict guidelines for their transportation, wildlife biologist Dr Bibhuti Prasad Lahkar told the BBC.

According to the rules, no elephant can be made to walk for more than 30km (18 miles) at a stretch or transported for more than six hours in one go.

The state’s wildlife officials, who’ve issued transit permits for the elephants, have so far refused to comment on the controversy. But after protests from activists and conservationists, “they have gone into a huddle, discussing a plan B,” according to a wildlife expert.

A mahout gives a bath to an elephant in a lake at Pobitora Wildlife Sanctuary on a hot summer day on June 05, 2018 in the Morigaon district, Assam, India.Image copyright GETTY IMAGES
Image caption Elephants are a protected species in India

“There’s some suggestion that the pachyderms may be moved in trucks to allow them the flexibility to stop if needed and that they could be accompanied by a forest department veterinarian to look after them,” he said.

Mr Barua, however, is blunt.

“Gujarat doesn’t need these elephants,” he says. “Wildlife laws prevent [the] display and exhibition of elephants. Laws ban performances by elephants in circuses, zoos are not allowed to exhibit them, so why should temples be allowed to use them in rituals or processions? Don’t elephants have rights?

“We worship Ganesha, the Elephant God. Why are the Gods then being put through such cruelty by a temple?”

Source: The BBC

22/06/2019

India asks scooter, bike makers to draw up plan for EVs – sources

NEW DELHI (Reuters) – India’s federal think-tank has asked scooter and motorbike manufacturers to draw up a plan to switch to electric vehicles, days after they publicly opposed the government’s proposals saying they would disrupt the sector, two sources told Reuters.

Niti Aayog officials met with executives from companies including Bajaj Auto, Hero MotoCorp and TVS late on Friday, giving them two weeks to come up with the plan, according to one of the executives.

The think-tank, which is chaired by Prime Minister Narendra Modi and plays a key role in policymaking, had recommended that only electric models of scooters and motorbikes with engine capacity of more than 150cc must be sold from 2025, sources have told Reuters.

Automakers opposed the proposal and warned that a sudden transition, at a time when auto sales have slumped to a two-decade low, would cause market disruption and job losses.

India is one of the world’s largest two wheeler markets with sales of more than 20 million scooters and motorbikes last year.

During Friday’s meeting government officials argued that switching to EVs is of national importance so India does not miss out on the global drive towards environmentally cleaner vehicles, one of sources said.

But industry executives responded that a premature switch with no established supply chain, charging infrastructure or skilled labour in India, could result in India losing its leadership position in scooters and motorbikes, the second source said.

“There were clearly drawn out positions,” said the source, adding there were “strong opinions” at the meeting.

Bajaj, Hero and Niti Aayog did not respond to a request for comment, while TVS declined to comment.

ELECTRIFICATION

Niti Aayog is working with several other ministries on the recommendations, which are part of an electrification effort to help India reduce its fuel import bill and curb pollution.

The proposal also includes incentives for local production of batteries, an increase ownership cost of gasoline cars and forming a policy to scrap old vehicles, according to records of government meetings seen by Reuters.

The panel has also suggested measures such as directing taxi aggregators like Uber and Ola to convert 40% of their fleets to electric by April 2026, Reuters has reported.

Executives from EV start-up Ather Energy, ride-sharing firm Ola and officials from the Society of Indian Automobile Manufacturers (SIAM), an industry trade body, also attended the meeting, the sources said.

The proposals are India’s second attempt for a switch to EVs. In 2017 it proposed an ambitious plan mainly for electric cars but rowed back after facing resistance from car makers.

The current push could disrupt the market order for two-wheelers and open up avenues for local start-ups, analysts say.

Scooter and bike start-ups like Ather, 22Motors and Okinawa are already making in-roads in India.

“It is extremely critical that we make the transition to electric quickly lest we get wiped out by another global wave,” Tarun Mehta, CEO and co-founder at Ather said.

Source: Reuters
Law of Unintended Consequences

continuously updated blog about China & India

ChiaHou's Book Reviews

continuously updated blog about China & India

What's wrong with the world; and its economy

continuously updated blog about China & India