SIAM demands FAME scheme extension, larger outlay

Auto industry body today urged the government to increase the outlay under the FAME scheme and also bring other leftover cities in the country under its purview to push the demand for hybrid and electric vehicles.

"We request the government to come out with the much larger outlay. It is important that the very scheme, which is today applicable only in some cities, is extended to the entire country," SIAM President Vinod Dasari said at the 56th Annual Convention of SIAM here.

This is the second year of the two-year pilot FAME scheme and the industry has seen quite encouraging response from the customers, he said.

"More than 80,000 electric and hybrid vehicles have been sold till now," he added.

To promote eco-friendly vehicles, the government had formally launched the FAME India scheme last year offering incentives on electric and hybrid vehicles of up to Rs 29,000 for bikes and Rs 1.38 lakh for cars.

FAME India - Faster Adoption and Manufacturing of Hybrid and Electric vehicles in India - is a part of the National Electric Mobility Mission Plan Dasari also asked the government to create a roadmap for reducing carbon emissions, ensuring safety and bringing fuel efficiency, in consultation with the industry.

"There is an urgent need for creating a roadmap on emissions, safety and fuel efficiency regulations that can provide us a clear direction for 5-10 years," Dasari, who is also the Managing Director of Ashok Leyland, said.

The roadmap should be prepared after consultation with various stakeholders and not be changed due to any external influence, he added.

He also demanded for a single ministry and a single agency to deal with the issues related to the auto industry, saying that at present multiple ministries are involved and most of them have little knowledge about the sector.

On Goods and Services Tax, he said the industry is waiting for the clarity on GST rates. The government should not fix more than two rates for passenger vehicles.

Dasari, in a lighter vein, told Heavy Industries Minister Anant Geete, "Let me assure you that the auto industry will not 'take panga' with the courts." Yesterday, Geete had advised the auto industry not to "take panga" (mess) with the courts.

The minister's remarks followed the comments made by Dasari, who said the industry lost Rs 4,000 crore in eight months following the ban in Delhi-NCR, which was lifted by the Supreme Court earlier this month.