In its ongoing efforts to promote a fair and sustainable transition to electric vehicles (EVs), WRI India, in collaboration with the State Climate Action Cell (SCAC), Government of Maharashtra, organized a high-profile convening on Wednesday. The event focused on the challenges and opportunities of Maharashtra’s shift from internal combustion engine (ICE) vehicles to EVs and brought together over 100 participants, including representatives from government, industry, MSMEs, academia, and experts.
Strengthening the Green Skilling Ecosystem
A key announcement at the event was WRI India’s knowledge partnership with the National Skill Development Corporation (NSDC). This collaboration aims to bolster India’s green skilling ecosystem by supporting livelihoods and sustainability across various sectors, particularly in helping automotive MSMEs transition to the EV ecosystem.
Highlighting the importance of this initiative, Dr. Archana Patankar, Vice President of Research & Impact at NSDC, said, “Government programs are focused on skilling across various stages of the EV supply chain, including OEMs and battery manufacturing.”
Ensuring a Just Transition for Workers and MSMEs
Maharashtra, a leader in India’s automotive sector, faces unique challenges during the EV transition. MSMEs, which form a significant part of the supply chain and employ large numbers of contractual and informal workers, could be disproportionately affected without adequate planning.
“Maharashtra is leading the country’s EV transition. However, an unplanned shift could disrupt the supply chain, which is mostly made up of MSMEs employing a large number of contractual and informal workers. This initiative by the SCAC in partnership with WRI India will bolster the sector, particularly the small businesses and workers in the automotive sector of Maharashtra, towards an EV-ready future,” said Abhijit Ghorpade, Director of SCAC.
He added, “To complement this, the state is developing a Just Transition Policy to protect the workers from displacement, by creating social safety net and a skilling ecosystem for a future-ready workforce.”
Insights from New Research and Industry Leaders
The event also saw the launch of Creating Holistic and Skilled Enterprises for a Smooth and Just Transition to Electric Vehicles, a publication by WRI India and the Automotive Skills Development Council (ASDC). This report builds on WRI India’s earlier research and offers strategies such as product diversification, skill development, innovation hubs, viable financing mechanisms, and policy support to ensure a fair transition for workers and MSMEs.
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“The shift from ICE vehicles to EV presents both tremendous opportunities and significant challenges for MSMEs and workers in Maharashtra, a state that plays a pivotal role in India’s automotive manufacturing sector, contributing 21% to the total automotive component manufacturing. Through our research, engagement, and on-ground implementation, in partnership with the SCAC, as well as cluster associations and the industry, we aim to support a just, equitable and inclusive ICE to EV transition pathway for Maharashtra’s MSMEs,” said Ashwini Hingne, Associate Director, Climate, Economics & Finance at WRI India.
The report draws on workshops held in Pune, Nashik, and Kolhapur earlier this year, which involved MSME owners, workers’ associations, and OEMs. Cluster-level EV transition plans are being developed for two automotive manufacturing clusters in Maharashtra, where at least one solution will be implemented.
Financial and Policy Support for MSMEs
Addressing the need for financial support, Abhay Daptardar, Assistant Director of the MSME Development and Facilitation Office, Ministry of MSME, said, “41 MSME clusters have been identified in Maharashtra since 2006. We are committed to supporting automobile clusters in addressing challenges during the EV transition.”
He emphasized that financing measures would ensure a smoother transition for MSMEs. Adding to this, Sanak Das, Assistant General Manager at SIDBI, stated, “SIDBI offers financing for charging infrastructure, battery swapping stations, and collateral-free loans for manufacturing units, along with interest subsidies for women entrepreneurs.”
Upskilling and New Opportunities
Industry leaders highlighted the growing demand for skilled workers in the EV sector. Arindam Lahiri, CEO of ASDC, noted, “Upskilling workers to meet the growing demand for service technicians in the EV sector is crucial.”
Ajay Agarwal, Chairman of MITCON Pune, observed, “The transition in the EV sector is leading to the creation of new opportunities, such as entrepreneurial mindset in youths through skilling.”
Maharashtra’s Role in the National EV Ambition
“Maharashtra can leverage the transition such that it contributes to job creation and economic growth in the state,” said Chaitanya Kanuri, Program Associate Director – Electric Mobility, Sustainable Cities & Transport at WRI India. He added, “State and cluster-level planning can also support auto sector OEMs and MSMEs in Maharashtra to diversify in a timely manner for higher value addition and productivity.”
Reflecting on similar transitions in other states, Prashant Girbane, Director General of the Mahratta Chamber of Commerce, Industries, and Agriculture, said, “WRI India conducted a significant study on the EV cluster in Tamil Nadu. Similar assessments of the needs of MSMEs undergoing transition are essential and should provide strategic recommendations for an inclusive and equitable shift. Policies of central and state governments should align with the support required for EVs.”
The event underscored Maharashtra’s critical role in India’s EV journey, emphasizing collaboration, financial mechanisms, and skilling as essential components for a just and sustainable transition.
