Less than 20% spent on Centre’s EV scheme

The FAME-II scheme, designed to support the electrification of public shared transport and help build charging infrastructure, was to expire on 31 March 2022, but was extended for two years until 31 March 2024, Because it was unable to create the expected consumer. Demand for Electric Vehicles (EVs)

Goyal said there has been a tremendous growth in the demand for EVs and incentive delivery after the incentives were extended in June last year. The official said that with the recent increase in incentives for two-wheelers, sales have gone up “sky” and the scheme is “moving ahead”.

“Now on an average 5,000 two-wheelers are given incentives per week. encouragement was the first 10,000 per kilowatt-hour (kWh), now raised to 15,000 per kWh,” he said. Highlighting that the incentive payment has been doubled to 40% of the value of the vehicle, Goyal said: “We are trying to encourage high-end products so that they Be popular.”

Speaking on the challenges being faced by the FAME-II scheme, the Secretary said that it takes time for any scheme to become popular, and that work has been hampered due to COVID-19.

The first phase of FAME was launched in 2015 and FAME-II started in 2019 with a time period of three years.

The government has taken several initiatives to promote the adoption and manufacturing of electric vehicles in the country in line with its focus on environmental and climate change concerns.

Electric vehicles also come under the Production-Linked Incentive (PLI) scheme for automobiles and auto components with a budgeted outlay. 25,938 crore for a period of five years. The ministry on Friday announced the names of the applicants approved under the scheme.

Under the category of ‘new non-automotive investors’, the government selected bids from EV manufacturers, Ola Electric Technologies, Axis Clean Mobility, Booma Innovative Transport Solutions, Elest Pvt Ltd, Hop Electric Manufacturing Pvt Ltd and Powerhall Vehicles Pvt Ltd.

In addition, the government had last year also notified a Phased Manufacturing Program (PMP) to promote indigenous manufacturing of EVs and components.

The Union Budget for FY23 gave a major thrust to this sector and increased the funding allocation for the FAME scheme from three times to three times. 2,908.28 crore. The allocation in last year’s budget was 800 crores.

With the budget emphasizing clean energy, EVs remained a core area for the shift towards robust public transport. Finance Minister Nirmala Sitharaman in her budget speech also announced that the government would come up with a battery swapping policy in view of the paucity of space in urban areas to set up large-scale charging stations.