New scheme to focus on ecosystem of electric and hybrid vehicles

Due to high cost and the lack of infrastructure for charging car batteries, electric vehicles could not record adequate sales, says the minister.

The Dollar Business Bureau

To address the challenges faced by the eco-friendly transport system, the government has decided to promote the usage of electric and hybrid vehicles in the country. The government has come up with a scheme— FAME-India (Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India—to encourage people to use eco-friendly mode of transport. The FAME-India scheme aims at streamlining the entire ecosystem of electric and hybrid vehicles and is expected to increase the sale of such vehicles in the market. This was stated by the Minister of State in the Ministry of Heavy Industries and Public Enterprises G M Siddeshwara on Tuesday. For the implementation of the scheme notified in March this year, the government has allotted initial outlays of Rs 75 crore. The minister said that due to high cost and the lack of infrastructure for charging batteries, electric vehicles could not record adequate sales. Under the scheme launched by the government in association with the Society of Indian Automobile Manufacturers (SIAM), the central government offers incentives on eco-friendly vehicles to promote their sales in India. The scheme that was proposed to be implemented over a period of six years, till 2020, aims to encourage the sales of electric and hybrid vehicles up to 60-70 lakh units per year. Initially, the scheme will be implemented for two-year period 2015-17. The government has allotted Rs 795 crore for the implementation of the scheme during this period. Key areas of focus under the scheme in the first phase include technology development, demand creation, pilot projects and setting up charging facilities. As per the scheme, buyers will get incentives in the form of lower cost, whereas manufacturers will be allowed to claim incentives from the government at the end of every month. According to the Ministry of the Heavy Industries, the scheme, to be kick-started in the metro-politan areas, eventually will be launched in smart cities before being taken forward to other parts of the country. The implementation of the scheme across the country will cost the government around Rs 14,000 crore. The scheme was launched by the government in view of the limited domestic reserves of the conventional fuels and the rising demand in the automobile sector. The ministry has been making efforts to identify alternative sources of energy for transport, which are eco-friendly yet cost-effective.    

May 5, 2015 | 7:45 pm IST.

 
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