The Part-II of FAME is here. Known by the acronym, it is actually the policy structure of incentives and promotion for the faster adoption of manufacturing of electric vehicles in India. It has already been implemented since Apr 1, 2019 and will have a validity of three years. The government is providing incentives to the tune of Rs 10,000 crore at every tier: OEMs of electric vehicles, service providers for creating charging infrastructure and advocacy groups to undertake promotional activities with public. Generating demand and awareness building are important objectives of the policy package.
All kinds of electric vehicles (EVs) – two wheelers, three wheelers, four wheelers, buses – registered with the transport authorities will be eligible for incentives. The exact sums of incentive for each category is specified and presented in the story. High-end cars are ineligible. The scheme will be monitored by an inter-ministerial committee which will take dynamic views on budget allocations based on feedback from the ground.
Part-I of FAME was introduced in April 2015 with an allocation of Rs 895 crore. So, it is a leap of faith for the government. Now, the industry has to match this pitch.
And true enough vendors and service providers are gearing up. Auto major, Hyundai Motors is investing $300 million in ride-hailing service Ola through group companies. The purpose is development of EV ecosystem and fleet services. Both EVs and charging infrastructure for India will be produced by this joint venture. Ola is focussing on electric mobility and has already announced its intention of ploughing in 1 million EVs on Indian roads by 2022.
Service Providers are also announcing their charging infrastructure plans. Uttar Pradesh Electricity Regulatory Commission (UPERC) has announced liberal tariffs while NTPC has invited bids for setting up charging stations. Successful bidders have to do maintenance works for ten years. The last date for submission of bids is Apr 23, 2019. Prospecting of opportunities is also underway. Finland’s government company Fortum is in talks with Hyderabad Metro Rail Ltd (HMRL) to set up more electric vehicle charging stations. More momentum is expected to unfold during the duration of the policy.
