FAME Scheme: Parliamentary panels suggests extending subsidy for EVs by two years

FAME-India (Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India) is a scheme launched by the government in 2011 as a part of the National Mission on Electric Mobility.(Representative Image)

A Parliamentary Committee on electric vehicles (EVs) has suggested the government extend benefits under the FAME India Scheme by two more years. The panel claims failure to extend the scheme will slow down the pace of EV adoption, The Times of India reported.

FAME or the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India Scheme was launched by the Centre in 2011 as part of the National Mission on Electric Mobility. The incentive ends in March 2024.

“Removal of government support would result in price escalation of EVs significantly. The committee finds that a large number of start-ups are also involved in this field, which may have to shut down once the FAME II is closed,” the Committee on Estimates (2022-23) on ‘Evaluation of Electric Vehicle Policy’ pertaining to the ministry of heavy industries (MHI) said in its report that was presented in Lok Sabha on March 24.

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The committee recommended that the government should extend FAME-II scheme “to allow more time to evaluate the effectiveness of the scheme and to make necessary adjustments/modifications to promote EVs", the report said.

As per the report, the committee further recommended that once the extended period of FAME-II is over, a comprehensive FAME-III scheme should be introduced based on the experience gained from FAME I and FAME II.

"The government should promote other technologies along with EVs such as flex fuel vehicles, hydrogen ICE, hydrogen fuel cell vehicles, with greater emphasis for mobility transition," the committee said.

The panel also recommended that a roadmap for solar charging stations should be prepared to reduce dependence on electricity generated by using coal, as a part of the government's green mobility objective, the report further added.

The committee, according to the report, also added that purchasing subsidies and cash-incentive schemes for scrapping/exchanging petrol/diesel vehicles for EVs can be considered as it would lead not only to faster adoption of EVs but also have a major impact on controlling CO2 emissions.