Demand Incentives of ₹2.54 Billion Provided to Deploy 85,626 Electric Vehicles
The government also approved 2,877 EV charging stations amounting to ₹5 billion under FAME II
The Union Minister Krishan Pal Gurjar, responding to a question in the Lok Sabha, stated that the government has supported the deployment of 85,626 electric vehicles (EVs) through demand incentives totaling ₹2.54 billion (~$34.04 million) under the second phase of Faster Adoption and Manufacturing of Hybrid and EVs in India (FAME) program as of July 15, 2021.
Phase-I of FAME Program
Regarding the funds earmarked and utilized under the program, Gurjar said the ministry provided a budget of ₹8.95 billion (~$119.96 million) for the first phase of the plan, which was available until March 31, 2019. Of this, a total fund of ₹8.56 billion (~$114.72 million) is utilized as of June 30, 2021. In the program’s first phase, incentives of ₹3.59 billion (~$48.11 million) were provided for 280,000 EVs. In addition, 425 electric buses were deployed in various cities as a part of the program.
The Minister stated that an independent consultant evaluated the first phase of the program. According to the findings, key parameters of fuel-saving and carbon dioxide reduction were significantly below the target for FAME though the program has increased awareness for EVs. The consultant also suggested revising the subsidy structure based on power train technology (to incentivize cleaner technologies) and establishing parity across technology.
The Minister also informed the Lok Sabha that the government consulted all stakeholders, including industry and industry associations, before the formulation of phase-II of the FAME India program.
The government allocated ₹100 billion (~$1.34 billion) for phase-II of FAME India. The second phase would mainly support the electrification of public transport and creating of charging infrastructure. In addition, the government will support 7,090 electric buses, 1 million electric two-wheelers (E-2W), 500,000 electric three-wheelers (E-3W), 55,000 electric passenger cars.
Regarding the sales of EVs and hybrid vehicles, Gurjar said the ministry has supported 85,626 EVs through demand incentives totaling ₹2.54 billion (~$34.04 million) under the second phase of FAME India as of July 15, 2021. In addition, the ministry also approved 6,256 electric buses to several state/city transport undertakings as a part of the program. Under FAME II, the ministry also approved 2,877 EV charging stations amounting to ₹5 billion (~$67 million) in 68 cities across 25 states.
In September 2020, Heavy Industries and Public Enterprises Minister Prakash Javadekar said in Lok Sabha that the government had provided a demand incentive of ₹950 million (~$12.9 million) towards 27,201 EVs until September 10, 2020.
Mercom had earlier reported that the Department of Heavy Industries approved 2,636 EV charging stations in 62 cities across 24 states and union territories under the second phase of the FAME India program.
Harsh Shukla is a staff reporter at Mercom India. Previously with Indian Express, he has covered general interest stories. He holds a Masters Degree in Journalism from Symbiosis Institute of Media and Communication, Pune.