Govt Spends Rs 871 Crore to Promote Electric Vehicles, Set Up Charging Infrastructure
As many as 87,659 electric vehicles and 6,265 electric buses have been incentivised under the second phase of FAME India, the country’s flagship scheme for faster adoption of electric vehicles till now, the government has told Parliament.
The government has spent upto Rs 871 crore till June-end on its flagship national scheme to supercharge the adoption of electric vehicles (EVs) in India and improve charging infrastructure.
In a written response submitted to the Lok Sabha, Minister of State for Heavy Industries Mahendra Nath Pandey revealed on July 26 that the budget utilised under Phase-II of Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicles in India (FAME India) scheme up until June 30, 2021, has been Rs 871 crore.
To improve the infrastructure required for the large scale use of electric vehicles, the government formulated a Scheme namely (FAME India) Scheme in 2015. Under the Phase-II of the FAME-India Scheme, currently being implemented, Rs. 1,000 crore has been allocated for the development of charging infrastructure.
“Under Phase-II of FAME India Scheme, 87,659 Electric Vehicles have been supported till 20.07.2021 by way of incentive. Further, 6,265 electric buses have been sanctioned to various State/City Transport Undertakings under Phase-II of the Scheme,” the government informed the Parliament.
The government also acknowledged that the challenges faced in the widespread adoption of electric mobility have mainly been the high upfront cost of electric vehicle as compared to regular cars and customer anxiety about the range of electric vehicles.
At present, Phase-II of FAME India Scheme is being implemented for a period of 5 years since April 1, 2019. The Heavy Industries Ministry has sanctioned 2,877 Electric Vehicle Charging Stations amounting to about Rs 500 crore in 68 cities across 25 States/UTs under Phase II of FAME India Scheme. This constitutes a major jump from the 427 charging stations that had been installed under the first phase of the scheme.
While domestic production and sales of EVs remain at a nascent stage as of now, the sector has received huge attention. NITI Aayog’s vision 2030 for the sector envisages a complete transition to EVs by that year.
In 2021, local companies such as Ather Energy and Ola Electric have announced plans to ramp up manufacturing capacity while several state government industrial departments have announced a policy push towards electric mobility.
The India Energy Storage Alliance projects that the Indian EV market will grow at a CAGR of 36 percent till 2026, reaching over 6.3 million units. According to the CEEW Centre for Energy Finance, the EV market in India will reach $206 billion by 2030.
Source: moneycontrol
