The Centre had recently decided to extend the current FAME India scheme till 30 September.
Electric vehicles manufacturers want the Centre to roll out the second phase of FAME India (Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India) scheme, with focus on two (2W) and three (3W) wheelers and public transport vehicles.
The Centre recently decided to extend the current FAME India scheme till 30 September. The Ministry of Heavy Industries and Public Enterprises recently issued a notification to this effect. However, the manufacturers say unless a clear policy is made for promotion of electric vehicles, there would not be much investment.
FAME I scheme was initially intended for two years—from 2015-16 to 2016-17. However, the government last year decided to extend the scheme for one year. Last month, it was again extended for six months. Ever since its inception on 1 April 2015, about 1.90 lakh electric/hybrid vehicles have been supported through demand incentives under the scheme (till March).
Sohinder Gill, director, corporate affairs, Society of Manufacturers of Electric Vehicles (SMEV), told this newspaper: “It’s a good news that the government has extended the FAME scheme for another six months. But we would like them to roll out the FAME II at the earliest as it will give more clarity on the policy vis-à-vis E-vehicles. Unless the manufacturers are sure of big volume, they will not invest in manufacturing E-vehicles and this can be achieved when the government comes out with a long-term roadmap.”
In a letter to the Department of Heavy Industries, the Society has said acceleration to electric in two-wheelers and three-wheelers and public transport like e-cabs and buses should be the focus area. Giving the example of China, it says the country has converted 100% two and three wheelers to electric by mandating.
“In India, two and three wheelers form close to 90% of the automobile population. Converting these to electric would lead to large scale electrification, savings to the middle class and visible green impact. These do not require expensive fast charging infrastructure to be created. Due to the nature of use (intra-city and daily running below 100km), electrification is easier to implement,” the Society has recommended.
The Society has further said that since “three wheelers are primary source of public transport in our cities for middle and lower middle class customers and conversion of 3W to electric will make a big difference on pollution in our cities”.
Similarly, other public transport, including intra-city buses and fleet cars/taxi can also go directly electric, as they can be charged at terminuses and commercial savings of running cost on electric will be meaningful, it said.
Talking about cars, Gill said strong hybrids can be considered as a step towards e-mobility, as hybrids do not depend much on charging infrastructure. In any case, it should not be “first hybrids, then electric” for all segments, because electric may then take a back seat and we will lose opportunity to evolve an India-specific solution of accelerated e-mobility for 2W, 3W and public transport, he added.
The government, on the other hand, hopes that it will be able to launch the second phase of FAME soon. Though the amount allocated for subsidy has not been announced yet, the government hopes that it would be sufficient for the next six months.
In order to promote electric vehicles, the NITI Aayog has proposed the formation of six committees to decide on the various issues pertaining to effective implementation of the scheme.