The Parliamentary Standing Committee on Industry recently issued essential recommendations for enhancing and extending the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME India) Scheme Phase-II. The committee advises prolonging the FAME India Phase-II Scheme’s deadline by at least three more years to maintain the drive to electric mobility. The current cut-off is March 31, 2024, backed by a budget of Rs 10,000 crore.
Recommendations for Improvement
The committee’s suggestions for improvements range from restoring subsidies on electric two-wheelers to introducing supportive government frameworks. Due to budget constraints, the Indian government reduced the FAME-II subsidy for electric two-wheelers after June 1, 2023. This reduction impacted electric two-wheeler sales and prompted the committee to propose the restoration of these subsidies.
Furthermore, it was also suggested that the ministry consider increasing the number of electric vehicles supported in the four-wheelers category and including private electric four-wheelers in the FAME-II Scheme. The committee believes that supportive, transparent, and consistent government strategies could aid India in becoming a global EV hub.
Increasing Budget Allocations and Funding
To maintain the momentum of electric vehicle penetration, the committee has recommended increasing budget allocations if necessary. An appeal is made for more funds to be allocated to Bharat Heavy Electricals Limited (BHEL) since they provide Engineering, Procurement, and Construction (EPC) solutions for EV charging stations.
Moving Towards an Inclusive EV Infrastructure
There is an emphasis on the importance of making charging stations more widespread. Public sector undertakings and government institutions should take part in establishing these stations on their premises. Moreover, FAME-II should encourage individual investors to invest in charging stations while providing assistance to women’s self-help groups and cooperative societies to run them.
The FAME India Scheme Background
FAME India, a part of the National Electric Mobility Mission Plan, aims to encourage the adoption of electric and hybrid vehicles by providing upfront incentives on purchases. The scheme began in 2015 and ended in March 2019 with a financial outlay of Rs 895 crore, focusing on technology development, demand creation, pilot project, and charging infrastructure.
The Achievements of FAME India
In the scheme’s first phase, about 2.78 lakh xEVs were supported with total demand incentives, and 465 buses were sanctioned to various cities/states under this scheme. For Phase-II, the Ministry of Heavy Industries is implementing the scheme for five years from April 1, 2019, with a budget of Rs. 10,000 crore, primarily focusing on public and shared transportation electrification.
Government Initiatives for EV Adoption
Other government initiatives encouraging EV adoption include the National Electric Mobility Mission Plan (NEMMP), the National Mission on Transformative Mobility and Battery Storage, the Production Linked Incentive (PLI) scheme, the Vehicle Scrappage Policy, the Go Electric campaign, and the EV30@30 campaign.
