March 25, 2021

World Resources Institute India reviews India’s electric vehicle policies

Environment: World Resources Institute India (WRI India) has launched three reports tracking the evolution of the electric vehicle (EV) sector in India. The reports study policy-level interventions, private sector strategies, and public transport adoption plans. They analyse the evolution of the EV sector in India and identify pathways for a smooth transition to EVs in the next decade.

The first report tracks the progress made by 12 states to increase the adoption of EVs and encourage private investments in their respective regions. The states reviewed include Andhra Pradesh, Bihar, Delhi, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Punjab, Tamil Nadu, Telangana, Uttarakhand, and Uttar Pradesh. It assesses mechanisms such as subsidies and tax exemptions through the lenses of consumers, charging infrastructure, and industry incentives. It recommends how states could frame clearer targets and objectives, link with policy incentives, and allocate fiscal resources.

The second report analyses 31 steps that private players have taken to increase their share of the EV market between 2017 and 2020. These ranged from efforts by the automotive sector to adopt EV technologies, to non-auto firms developing manufacturing and supporting infrastructure, and legacy firms partnering with start-ups and global players to gain market share.

The third report is about the procurement of electric buses. It highlights that electric buses, despite their higher upfront costs, can be financially viable in the long term. It suggests that states should look at the life cycle of a bus in its entirety, not just in initial investments, because electric buses are cheaper to maintain in the long run as compared to diesel versions.

India has been on track to meet its commitments made at the Paris Agreement in 2015, having achieved a reduction of 21 percent in emission intensity between 2005 and 2014. However, its transition to EVs has progressed very slowly. As a signatory to the Electric Vehicle Initiative, it will have to hasten the pace if it is to meet its goal to deliver 30@30—ensuring that EVs comprise 30 percent of vehicle sales by 2030.

Read this to know more about air quality in India.


May 20, 2021

Home Ministry extends validity period of FCRA registration certificates

Fundraising & Communications: The Ministry of Home Affairs (MHA) has issued a circular extending the validity of FCRA registration certificates to September 30th, 2021. This applies to all FCRA licences that have expired or will expire between September 29th, 2020 and May 31st, 2021. The decision to extend the deadline has been driven by the exigencies arising from the COVID-19 situation.

FCRA refers to the Foreign Contribution (Regulation) Act 2010, which permits charitable organisations based in India to raise funds from foreign sources.

The order also clarified that nonprofits that have already opened an account and have the requisite permission to receive foreign aid, can henceforth receive it only in these newly-opened accounts.

The FCRA law was amended in September 2020 to include a clause that mandated that all nonprofits receiving foreign aid must necessarily open an account in State Bank of India’s New Delhi Main Branch. The government had initially set the deadline for this account opening as March 31st, 2021; it later extended it to June 30th, 2021 after several nonprofits argued in court that there had been delays because necessary approvals from MHA had not been received.

Several organisations have not been able to receive foreign funds during the crisis caused by the second wave, and this has impacted their COVID-19 relief efforts. Relaxing the foreign funding rules could significantly help organisations ramp up their operations to help individuals, supply critical healthcare equipment, and respond to communities in rural areas.

Read this article to know how amending the FCRA can have unforeseen implications.


May 20, 2021

Corporate spending on oxygen support and medical equipment now counts as CSR

Philanthropy & CSR: The Ministry of Corporate Affairs (MCA) has issued a circular that allows corporate spending on health infrastructure for COVID-19 care to qualify as corporate social responsibility (CSR) expenditure.

This includes setting up medical oxygen generation and storage plants, manufacturing and supply of oxygen concentrators, ventilators, cylinders, and other medical equipment to counter COVID-19.  

The announcement comes at a time when all efforts are being directed towards expediting efforts to support the country’s healthcare infrastructure.

According to the circular, companies can now undertake projects and activities in collaboration with other companies using CSR funds. Additionally, they can contribute to specified research and development projects, as well as publicly funded universities and certain organisations that conduct research in science, technology, engineering, and medicine.

The government had earlier clarified that setting up makeshift hospitals and temporary COVID-19 care facilities would also be considered a CSR activity. Rajesh Verma, the Corporate Affairs Secretary, has requested businesses to consider converting vacant office buildings into COVID-19 facilities to cater to the rapidly increasing caseload.

Read this article to understand why media attention on COVID-19 deaths due to lack of oxygen in big cities has skewed donor priorities.