Ingredients for Make in India are present in EV ecosystem: EESL Executive VC

New Delhi: The idea of an Aatmanirbhar Bharat has been at the core of the strategies followed by Energy Efficiency Services Ltd (EESL), a JV company that is integral to the government's energy efficiency programmes in India. In this interview with PSU Watch, Saurabh Kumar, Executive Vice Chairman of EESL, dwells on the EV ecosystem in India, the installation of smart meters, distribution of LED lights under UJALA scheme and explains how they have contributed towards Make in India and how far along is the milestone of self-reliance. Here are excerpts:

Prime Minister Narendra Modi has given a clarion call for Aatmanirbhar Bharat. What does this mean for EESL?

If you look at EESL's journey over the last seven years, the theme has been Make in India all along. Take the UJALA scheme for instance, where we distributed 37 crore bulbs. One of the criteria for procurement was that anybody who wishes to participate in the bidding process should have a manufacturing facility in India. All of our projects have a Make in India story. There's also a study carried out by the International Energy Agency (IEA) on us in 2016, where they have actually quantified the Make in India part very well. I can say safely we have been part of this clarion call since 2014.

Our plan is that in the next three years, we should have 10,000 public charging stations that are being operated by EESL across major towns, state capitals and highways: Saurabh Kumar, EESL

As far as the EV industry is concerned, it continues to be dependent on imports. How long do you think it will take the indigenous industry to come of age?

If you look at any new technology in its initial stages, take vehicle manufacturing for example, it is based on imports. And slowly over time, manufacturing started here. The same thing applies to EVs. What are the critical parts of an EV? Number one is the battery. There are at least four or five international battery manufacturers, like Switzerland's Leclanché, who have tied up with Indian battery manufacturers like Exide and Amara Raja and have set up their manufacturing plants in India. So, EV battery manufacturing has now begun. 

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The second part is power electronics, which is now also being made in India. The third part is motor, which is already being made in the country. So, all the ingredients for Make in India are present in the EV ecosystem. I think moving forward as we see the demand grow, and people start getting economies to scale, we will see a deeper and very quick setup of manufacturing facilities for EVs. 

What are the targets that EESL has set for itself in the EV infrastructure segment?

Under FAME-II, we have already been awarded more than 1,000 charging stations across 10 cities. And we hope to install them in the next six to eight months' time. In the meantime, we are also pursuing the Ministry of Heavy Industry to bring out more such RFPs. Our plan is that in the next three years, we should have 10,000 public charging stations that are being operated by EESL across major towns, state capitals and highways.

India has come a long way both on the policy and the regulatory front. I think what is missing in the EV story is awareness: Saurabh Kumar, EESL

Are we going to need those many charging stations?

In this country, we have about 65,000 petrol pumps. In a country like Netherlands, where EV adoption is high, they have 60,000 charging points and they still feel it is not enough. So, no one really knows how many would be enough.

I think it's the other way round as well. If there is adequate infrastructure for EVs, people would be keen on buying it.

That's true and that is why FAME II is so important. If you see in and around Delhi, we have more than 100 public charging stations. Around 47,000 transactions happened at charging stations in the month of July. The average utilisation of the charging stations is nearly 20 percent. Interestingly, at the time we started out, we assumed that the average utilisation would be around 5 percent. The journey from 5 to 20 percent has been driven by the availability of EV charging infrastructure. We have enough charging stations now, at least in the Delhi and NCR region. 

If 17 percent wasn't billed, it totals to nearly 200 BU. When you multiply 200 BU with an average cost of Rs 5, the total unbilled amount comes to Rs 1 lakh crore: Saurabh Kumar, EESL

The government recently paved the way for registration of EVs without batteries. Now imagine what possibilities does it open up? For example, buying a Hyundai Kona EV today would cost me Rs 21 lakh. Around 40 percent of this cost is comprised of battery. The cost of running is less than Re 1 per Km. So, if as a service provider, I offer batteries as service, the cost of acquisition for the consumer comes down to around Rs 14 lakh.

For an internal combustion engine car, if you are driving it for 3,000 km a month, you would need around 300 litres of fuel and you would be spending Rs 24,000 per month on fuel. And I can provide batteries as service for Rs 10,000 per month. I get Rs 10,000 per month and I am able to recover my cost. And for the consumer, the cost of acquisition comes down. So, India has come a long way both on the policy and the regulatory front. I think what is missing in the EV story is awareness.

EESL has been closely involvement in the installation of smart meters in India. What changes do you see on the ground because of smart metering?

The average increase in revenue per metre per month is more than Rs 200 on average. Secondly, transparency in the system has increased dramatically. With a smart metre, you can track your consumption on real-time basis every 15 minutes. As a result of this, disputes on bills have gone down to 1 percent. People are paying their bills on time. And I am not just talking about metro cities like Delhi, but change is visible in smaller cities in states like Bihar, UP and Haryana. 

If you look at the report brought out by the Central Electricity Authority (CEA) in 2019, the billing efficiency of India was at 83 percent on an average. Now translate this gap into numbers. India sold 1,300 billion units (BU) of electricity last year. If 17 percent wasn't billed, it totals to nearly 200 BU. When you multiply 200 BU with an average cost of Rs 5, the total unbilled amount comes to Rs 1 lakh crore. If you put smart metres, you are able to plug this 17 percent. And if these smart metres are prepaid, it changes the entire paradigm for discoms because then they get upfront payment. The installation of smart meters is fundamental to the sector. 

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