Icat to launch portal to streamline applications for vehicle testing by March

The upcoming portal – Icat Online Certification System (Iocs) 2.0 – will consolidate manufacturer and product information, expanding on the original 2010 portal’s function to include testing for initiatives such as the ₹10,900-crore PM E-drive scheme. The mandatory testing under Central Motor Vehicle Rules (CMVR) will also be managed through the new system.

“The original portal was created in 2010 with the intention to cater to CMVR testing. The new portal is likely to cater to the additional testing related to government schemes such as PM E-drive and PLI-Auto,” the first of the two persons cited earlier said, both of whom spoke on the condition of anonymity.

Also read: Ola Electric says it has enough service centres. Govt isn’t buying that

Queries sent to Icat, an autonomous testing agency under the aegis of the ministry of heavy industries, did not elicit a response till press time.

PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-drive) scheme, with a financial outlay of ₹10,900 crore, came into effect on 1 October 2024 and will remain in force until 31 March 2026. Its main aim is to accelerate the adoption of electric vehicles, establish charging infrastructure and build a robust EV manufacturing ecosystem in the country.

PLI-Auto scheme – launched in 2021 with a corpus of ₹25,938 crore – refers to the production-linked incentive scheme for automobiles and auto components, which incentivises manufacturers for sales of zero-emission vehicles. 

Under these clean mobility schemes, the government has mandated automakers to seek certification regarding the usage of domestically-manufactured components in final products, a criteria also known as localisation.

There were plans to develop this new portal right before the Covid-19 pandemic, but they were delayed, the second person said.

In a bid to encourage green mobility and cut carbon emissions, the Union government started incentivising electric vehicles a decade ago with the FAME Scheme. FAME stands for Faster Adoption and Manufacturing of Electric (and Hybrid) vehicles. In a further push, it also unveiled the PLI-Auto scheme.

Also read: India plans to offer grants, ease regulatory norms for rare earth processing amid China supply woes

After two iterations of the FAME scheme, the government is currently running the PM E-drive scheme to increase the adoption and manufacturing of electric two-wheelers, three-wheelers, buses, trucks and ambulances.

Under this flagship scheme, the government allocated ₹780 crore for the upgradation of four vehicle testing agencies. A key focus of these agencies was to certify products for benefits under the PM E-drive and PLI-Auto schemes.

These four testing agencies—Automotive Research Association of India (ARAI), Icat, National Automotive Test Tracks (Natrax), and Global Automotive Research Centre (GARC)—are responsible for localisation clearances related to electric vehicles under the PLI-Auto scheme and the PM E-drive scheme, as per guidelines of both the schemes

Icat can also test and certify vehicles for the conditions mentioned in Rule 126 of the Central Motor Vehicles Rules, which is mandatory for manufacturers to sell a particular vehicle.

Icat has issued 138 certificates under the Electric Mobility Promotion Scheme 2024 (EMPS) and 7 certificates to Champion OEMs (original equipment manufacturers) under the PLI-Auto scheme till September 2024, the FY25 annual report for the ministry of heavy industries said.

EMPS was an interim scheme between the FAME and PM E-drive scheme. It ran from April to September 2024, and has since been subsumed under the PM E-drive scheme.

But the industry has faced concerns related to non-uniform timelines followed by testing agencies for approvals.

Also read: Maruti Suzuki’s Manesar plant gets cargo rail link

“Newer technologies, such as electric vehicle powertrains, have increasingly gained momentum in the country. This has led to an increase in the number of manufacturers seeking necessary approvals from testing agencies. While agencies do commendable work, the timelines with which they work can be non-uniform. Some approvals take a few days, while others take months. It becomes difficult to launch new products in case of such timelines,” said Pawan Kakkar, managing director, YC Electric Vehicles, which manufactures about 50,000 e-rickshaw units in a year.

Testing of vehicles assumes significance due to the localisation component under India’s clean mobility schemes. Both the PM E-drive and PLI-Auto schemes have stringent mandates for using domestically-manufactured goods and raw material to make final products.

Under the PLI-Auto scheme, manufacturers have to show 50% domestic value addition (DVA) to be eligible for incentives. Similarly, under the PM E-drive scheme, manufacturers have to ensure that they only import components mentioned in the phased manufacturing programme (PMP). All other components have to be sourced domestically.

Under the second iteration of the FAME scheme, which ran from FY19 to FY24, the government penalised manufacturers who claimed the demand incentive despite violating the PMP. These companies—Hero Electric Vehicles Pvt Ltd, Benling India Energy and Technology Pvt Ltd and Okinawa Autotech International Pvt Ltd—received the assent of testing agencies, and were able to claim incentives. Only under a second inspection were PMP violations found. 

The government’s Serious Fraud Investigation Office (SFIO) searched the premises of these companies, as per a 2 December press statement by the corporate affairs ministry.