‘Centre will bring FAME to more states; ‘J&K to see major EV focus’

He also said that riding on the “tremendous response” to the production-linked incentive scheme, India could become a net exporter of lithium-ion batteries by FY25. Edited excerpt:

What are your plans for the expansion of Phase II of FAME?

So far, we have kept big cities in mind but now we will go to smaller cities and accordingly have expanded the scheme to cover the states of Himachal Pradesh and Assam. We are also targeting big cities which have high level of pollution like Bengaluru, Ahmedabad, Mumbai and Delhi (for supply of electric buses under FAME). Now, considering the special nature and requirement of Jammu and Kashmir, we are expanding the FAME coverage there.

At FAME, an important component is the battery, where under the PLI scheme we are looking at setting up a manufacturing base for Lithium-Ion batteries. We are dependent on imports here. Under PLI, we were expecting to get interest for around 30-35 GW, but the response has been overwhelming. We have found contenders for 108 GW which perfectly fit the criteria set for this kind of investment.

We were told by approved companies that they have an internal target of 75 GW of additional capacity in addition to the government’s target of 50 GW. So, if the country has 125 GW capacity, India will not have to import this critical component and we will become completely self-reliant and we will also be a net exporter. This scenario may develop by 2024-25. India’s total capacity is expected to be 163 GW by 2030. We are currently evaluating options in terms of specific batteries.

What progress has been made so far and will FAME be extended beyond 2025?

FAME’s progress is good. We have moved very fast on the targets set under the scheme and the extension of the subsidy scheme will depend on such requirements in the final year.

Under FAME, we have laid special emphasis on two wheelers where support started under FAME-1 and continues in FAME-2. Green subsidy has been provided to 610,580 vehicles in two wheelers till 7th November. we give 15,000 per kWh as subsidy.

was subsidized earlier 10,000 per kWh, which was later increased to 15,000 per kWh. This immediately attracted the youth towards electric vehicles as the sales of two wheelers increased from around 700-800 per month to 3,000-5,000 per month.

We also subsidize three wheelers, where the number has reached 66,126. Subsidy is also provided to commercial four wheelers and 4,998 of them have been subsidized so far.

Any plans to bring private four wheelers under FAME?

We have not decided on subsidy for this segment as commercial vehicles are those which ply maximum on the roads as compared to the planned travel by private vehicle owners. We aim to tackle pollution and this largely comes from commercial vehicles. Private vehicle owners can take these vehicles without subsidy.

Does the budget for FAME need to be increased?

The budget for FAME-2 has already been increased 10 times—from 1,000 crores 10,000 crore now. We still have to use this money and I think the money is enough to meet our current needs by 2025. If we need more money at a time, we will give due attention to it.

There have been several incidents of EV fire, following which the government has taken some steps including new testing norms. What else can we expect in terms of security?

We have recently come up with an EV policy which is related to precaution and safety and the Ministry of Road Transport and Highways has also worked to some extent. Recently we took a policy decision to increase the testing criteria for electric vehicles with effect from April 2023.

What is the progress in setting up charging infrastructure?

Work is underway on the charging infrastructure. We are supporting a lot in that segment and private companies are also working in the EV charging space. There is a new initiative in which 22,000 petrol pumps have been identified and a team of three departments- Ministry of Heavy Industries, Ministry of Petroleum and Ministry of Road Transport.

Petrol pumps having space for charging infrastructure and food court have been identified and work is underway. The land and site will belong to the petrol pumps; We will provide subsidy for setting up charging infrastructure.

We have budgetary support for the current requirements for charging infrastructure and we will decide as and when required for further requirement. Presently, the total budgetary support is 1,000 crores.

There are many PSUs under the Ministry of Heavy Industries which are making loss. What is the way forward for them?

The companies that have been identified under strategic sectors are being supported and will do well. Among others, it’s not like everyone is being laid off. Some have been identified for disinvestment and are under process, such as some projects of Cement Corporation of India, several paper mills.

Recently related land HMT It has been transferred to the Government of Uttarakhand. Will similar steps be taken for assets of other companies?

We are expeditiously disposing of the matters which are under discussion under the disinvestment process. The transfer of land to the Uttarakhand government is an example of prompt action as part of the government’s disinvestment process. Scooters India properties in Lucknow are also being cleared.