EV Subsidy: Ministry Issued Recovery Notices to 7 EV Makers for ₹469 cr

Ministry of heavy industries issued recovery notices to 7 cos for 469 cr

Return subsidy or face legal action

In last fiscal year, the ministry of heavy industries suddenly stopped the disbursal of subsidies under the FAME II scheme after receiving anonymous emails alleging that several electric vehicles companies were claiming subsidies without meeting the Phased Manufacturing Plan (PMP) norms meant to increase indigenisation, investments and employment in the country.

Now in a latest, the govt. has asked the companies under investigation to refund the money they wrongly claimed under its Faster Adoption and Manufacturing of Electric Vehicles (FAME) II scheme or lose their eligibility to participate in the third leg of the subsidy programme.

Despite all this, the companies barred from FAME claims kept selling EVs at incentivised rates.

According to a report by Economic Times, citing a government official privy to the matter, companies that are under investigation for wrongly claiming subsidies will have to first refund the money to the government, and only then would they be allowed to continue participating in the scheme.

Earlier in this fiscal year, Recovery notices totalling Rs 469 crore had been sent to seven companies — Hero Electric, Okinawa Autotech, Ampere EV, Revolt Motors, Benling India, Lohia Auto and Amo Mobility — for allegedly violating local sourcing norms. Fame-II scheme mandates at least 50% local sourcing. Local sourcing is a process that refers to acquiring materials or products from manufacturers within the country. Instead of sourcing international supplies, the business opts to buy from local manufacturers.

Automotive Research Association of India (ARAI) is investigating the alleged violations. ARAI, the automotive R&D organization, under the Ministry of Industries, is also responsible for testing the localization percentage before the EV is certified for sales.

Revolt Intellicorp, Amo Mobility agreed to return the amounts claimed. Amo Mobility says it has passed on 11 crore subsidy.

While Benling India has asked for the due amount to be deducted from future payments of subsidies, other EV companies have been asking the government for relief on the payments.

Earlier in last December, the Ministry said it had received complaints against 12 companies, including Hero Electric and Okinawa Autotech.

As per other media reports, previously, three-wheeler manufacturers, including — Victory Electric Vehicles, Thukral Electric, and Best Way Agencies— have had their subsidies paused, for reasons including sourcing imported parts for vehicle production or using unapproved outdated battery technology. Other companies like Atul Auto, Euler Motors, and Dilli Electric, subsidies have paused due to delays in compliance certification or discontinuation of the certified vehicle.

The government has made its clear that companies which do not refund the subsidies will have to face legal action. 

Govt Sanctions 670 New Electric Buses and 241 Charging Stations under FAME Scheme

In a big push towards electric mobility the Government has sanctioned 670 Electric buses in the states of Maharashtra, Goa, Gujarat and Chandigarh and 241 Charging Stations in Madhya Pradesh, Tamil Nadu, Kerala, Gujarat and Port Blair under Phase-II of FAME India Scheme. 

Announcing this in a series of tweet messages, Union Heavy Industries minister, Shri Prakash Javadekar, said that the decision reflects government's commitment to reduce dependence on fossil fuel and to address issues of vehicular emissions. Shri Javadekar said that the decision is in line with Prime Minister Shri Narendra Modi's vision for eco-friendly public transportation. 

Happy to announce sanction of 670 Ebuses in Maharashtra, Goa, Gujarat & Chandigarh & 241 Charging Stations in MP, TN, Kerala, Gujarat & Port Blair under Phase-II of #FAME India Scheme.This is in line with PM @narendramodi ji’s vision to push for eco-friendly public transportation pic.twitter.com/A76yokEYg2

— Prakash Javadekar (@PrakashJavdekar) September 25, 2020

The Department of Heavy Industries (DHI) under Ministry of Heavy Industries and Public Enterprises, is administering the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME India) Scheme since April, 2015 to promote adoption of electric/ hybrid vehicles (xEVs) in India .

In the First Phase of the Scheme upto 31st March 2019, about 2,80,987 hybrid and electric vehicles were supported by way of demand incentive, amounting to about Rs 359 crore. Further, DHI sanctioned 425 electric and hybrid buses to various cities in the country with total cost of about Rs. 280 Crores. The Department of Heavy Industry had also sanctioned 520 Charging Stations for Rs. 43 Crore (approx.) in cities like Bangalore, Chandigarh, Jaipur and NCR of Delhi under Phase-I of FAME-India Scheme.

At present, Phase-II of FAME India Scheme is being implemented for a period of 3 years w.e.f. 01st April, 2019 with a total budgetary support of Rs. 10,000 crore.
This phase focuses on supporting electrification of public & shared transportation and aims to support, through subsidies, approximately 7000 e-Buses, 5 lakh e-3 Wheelers, 55000 e-4 Wheeler Passenger Cars and 10 lakh e-2 Wheelers. In addition, creation of charging infrastructure is also supported to address the anxiety among users of electric vehicles.

Electric 2-Wheeler Makers Learning to Survive without Subsidy, FAME II Not Worked: SMEV

Mass segment electric two-wheeler makers are learning to "live without government support" as FAME II scheme to promote electric mobility has not met its objective, according to industry body SMEV.

The Society of Manufacturers of Electric Vehicle (SMEV) said after getting a "shock" when FAME II was implemented from April 1, 2019, the industry has devised ways to keep afloat by selling low to mid-speed vehicles, which don't qualify for incentives at heavy discount but incurring losses in the process.

"Industry got a big shock when FAME II started. People are now learning to survive without government assistance to some extent at least. The result of this is that subsidised vehicle sales have dropped drastically but industry sales has not dropped," SMEV Director General Sohinder Gill told PTI.

He was responding to a query on the impact of FAME II on the electric two-wheeler market.

Gill further said, "If it was only customer-incentivised vehicles (under FAME II), the industry would have totally collapsed."

As per SMEV data, sales of FAME II qualified electric two-wheelers in April-December 2019 period stood at just 3,000 units as against 48,671 units in the year-ago period when FAME I was in place, a decline of 93.84 per cent.

On the other hand, as per industry estimates, non-subsidised electric two-wheeler sales stood at 49,000 units during the period as compared to around 10,000 units in the year-ago period when FAME I was in place.

"What happened was that many players came with alternate products and models and tried to make some business out of it. Prices of subsidised products have become very high so the industry had to resort again to bring mid- and entry-level products to get volumes with heavy discounts," he added.

Gill said many companies are now making more losses than earlier.

Expressing similar views, Hero Electric Managing Director Naveen Munjal said that technically one year has almost been "wiped out from our balance sheet" and the company is only going ahead as it makes senses "in the long run and in the bigger scheme of things but we are bleeding in the process".

Pointing out that FAME II hasn't met its objective, Gill said, "Market should have shifted towards higher speed and greater performance, which has not happened."

He further said, "In the current avatar of FAME II, you will find volumes (for incentivised electric two-wheelers) very very low."

Gill, however, expressed optimism that from next year onwards volumes will start coming back in a much better way "not because of government incentives" but due to the business models that companies have pursued such as focussing on low- and mid-range models, and B2B deliveries.

He said the government needs to have a rework on FAME II, especially eligibility criteria based on range and battery power while also relaxing localisation level, which will be 75 per cent from March this year, up from 50 per cent since March 1, 2019.

"Internal combustion engine vehicles, even after 40-50 years have not reached 75-80 per cent localisation. So in electric mobility they expect that 75 per cent must be localised from March 1, 2020," Gill lamented.

He cautioned that if "FAME II is not reworked, industry will bottom out".

"They will still get volumes but subsidised products will be very less. The market will continue to sell products, which are liked by customers which are low- and mid-speed range," he said. PTI RKL

Govt Invites Proposals for Deployment of EV Charging Infra under FAME-II

The government has invited proposals from entities for the deployment of electric vehicle charging infrastructure in big and smart cities.

Proposals are invited from entities that intend to develop EV charging infrastructure in million-plus cities as per the 2011 census; and smart cities as notified by the Ministry of Housing and Urban Affairs, the Ministry of Heavy Industries said.

It also invited proposals from satellite towns connected to seven metros (Delhi, Mumbai, Kolkata, Chennai, Hyderabad, Bangalore and Ahmedabad); major cities of special categories State/UTs; and the capital city of all states/UTs not covered in the above categories.

"Initially, 1,000 EV charging stations are earmarked for deployment through this EOI. These charging stations will be sanctioned to different states/cities/entities after evaluation of the proposals received under this EOI," the Heavy Industries Ministry said.

It further advised that to the extent possible charging station should be connected with 'grid-connected solar power plant' of required capacity as per MNRE guidelines so as to ensure grid stability and green energy for electric vehicles.

The last date for submission of the proposals is August 20, the ministry said in the Expression of Interest (EoI).

The government recently approved Phase-II of the FAME India Scheme [Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India], for three years commencing from April 1, 2019 with a total budgetary support of Rs 10,000 crore.

Under Phase-II of the scheme, the government intends to support development of EV charging infrastructure by extending capital grant to different organisations working with city government for the promotion of use of electric vehicles (EVs). PTI RSN

India Releases ​$1.45 Bn worth of Action Plan for E-Vehicles; Ban on IC-based 2-Wheelers from 2025

India, under its "National Mission for Transformative Mobility and Battery Storage" initiative, has formulated an action plan to run electric two-wheeler and three-wheeler vehicles. The action plan formulated by NITI Aayog has proposed to ban all IC (internal combustion) engine powered two-wheelers and three-wheelers in India. The ban on IC-based two-wheelers will start in 2025 and for hree-wheelers the ban will start in 2023.

This information was given by Mr. Nitin Gadkari, Union Minister for Road Transport & Highways in response to a question in Lok Sabha today.

For the promotion of electric mobility in the country, the Department of Heavy Industry has notified Phase-II of the FAME India Scheme [Faster Adoption and Manufacturing of Electric (& Hybrid) Vehicles in India], vide S.O. 1300 dated 8th March 2019, with the approval of Cabinet with an outlay of Rs. 10,000 crore (~ US$1.45 Bn) for a period of 3 years commencing from 1st April, 2019.

The Phase-II of the FAME-India Scheme is proposed to be implemented through the following verticals:

1. Demand Incentives - The important components of the Scheme which directly help in demand generation of electric vehicles (e-vehicles).


2. Establishment of network of charging stations.


3. Administration of the Scheme including Publicity, IEC (Information, Education & Communication) activities.

The following categories of Vehicles will be eligible for Demand Incentives:

• e-Bus


• Four Wheelers (Electric, Plug in Hybrid and Strong Hybrid) (e-4W).


• Three Wheelers (Electric) including Registered E-Rickshaws / e-Carts (e-3W)


• Two wheelers (Electric) - (e-2W)

In the e-3W, e-4W and e-Bus segments, incentives will be applicable mainly to vehicles used for PUBLIC transport or those registered for COMMERCIAL purposes. However for e-2W segment, incentives are also applicable for privately owned vehicles in addition to those used for public transport or for commercial purpose.

Eligibility for Incentives

The Incentives shall be available for buyers (end users/consumers) in the form of an upfront-reduced purchase price to enable wider adoption, which will be reimbursed to vehicle manufacturers by Govt. of India.

• For individual beneficiaries, not more than one vehicle of particular categories will be incentivized.


• The incentives would be reviewed annually or earlier by the Project Implementation & Sanctioning Committee (PISC).


• All models eligible for demand incentives will be eligible for three year comprehensive warranty including Battery.


• Demand incentives for e-buses will be provided only on operational model (OPEX) and will be delivered though State/City Transport Corporations (STUs).


• Under the action plan, it is proposed to restrict Demand incentives to vehicles with ex-factory price less than a particular threshold value as defined in the Annexure 2 of scheme notification.

Vehicles which comply with the FAME India Phase-II eligibility criteria, will be considered under this scheme, and for this all the vehicles need to be registered under CMVR, 1989 for becoming eligible for reimbursement of demand incentives.

It is proposed to extend uniform demand incentive @ INR 10,000/- per KWh for all e-vehicles (including PHEV and Strong Hybrid) except e-Buses. For buses, uniform maximum demand incentive @ 1NR 20,000/- per KWh is proposed, which is further subject to competitive bidding amongst the OEMs.

All vehicle models approved under FAME India scheme Phase 11, will have to undergo Conformity of Production COP test for all the eligibility parameters by recognized testing agencies at least once a year.

FAME-II certificate will be valid for one year (April to March). All vehicle models approved under this Scheme, will have to submit re-validation certification to DHI/N AB at the frequency of one year as per clause 2.14 & 2.15 above, complying to the FAME India Phase II eligibility parameters. Such OEM will proceed for re-validation after ensuring the compliance to the latest notifications as per CMVR, 1989, by testing agencies recognized under rule 126 of CMV, 1989 and Administrative procedure as per FAME India Scheme Phase-II document.

Source - Press Information Bureau, Department of Heavy Industries Notification (PDF)

EV Scheme Phase-2: Govt to Spend $1.4 Bn to Subsidize Sales of Electric & Hybrid Vehicles

The Union cabinet chaired by the Prime Minister Shri Narendra Modi has approved the proposal for implementation of Phase-2 of Electric Vehicle Scheme 'Faster Adoption and Manufacturing of Electric Vehicles in India' (FAME).

For adoption of FAME India Phase II, Cabinet Committee of Economic Affairs on Thursday approved a Rs 10,000-crore ( ~ US$1.4 Billion) package, which will offer car buyers in the country upfront incentives on purchase of electric vehicles. The package announced will also be used for setting up charging infrastructure and focussing on electrification of public transport.

Applicable only on vehicles costing less than Rs 15 Lakhs (~ US$21,177), the subsidies would be offered based on the battery capacity of the vehicle, ranging from buses and cars to 3-wheelers and motorbikes.

The scheme also proposes for establishment of charging infrastructure, whereby about 2700 charging stations will be established in metros, other million plus cities, smart cities and cities of Hilly states across the country so that there will be availability of at least one charging station in a grid of 3 km x 3 km.

Establishment of Charging stations are also proposed on major highways connecting major city clusters. Charging stations will be established on both sides of the road at an interval of about 25 km each.

The scheme with total outlay of Rs 10,000 Crores over the period of 3 years will be implemented w.e.f. 1st April 2019.

FAME Phase II is the expanded version of the present scheme titled 'FAME India I' which was launched on 1st April 2015, with total outlay of Rs 895 crores.

The second phase of the scheme was awaited for a year but it repeatedly got postponed to finally approved this month, as the government think tank NITI Aayog and various ministries have had a tough time building consensus with each other.

India has set a target of achieving 30% electric mobility by 2030 in order to cut reliance on fossil fuels to curb pollution and reduce its import bill.

To recall, in September last year the PMO had sought reworking of a EV policy draft to offer incentives of as much as $759 million (₹5,500 crore), which will mostly be use to encourage local manufacturing of lithium-ion (Li-ion) batteries used in EVs.

Meanwhile, a Chinese EV company, Sunra, which boast of being No.1 in sales volume in the world, is planning to set up its manufacturing facility in India.

In January 2017, a draft of India’s 10-year energy blueprint has revealed that the government is expecting as much as 57% of the country’s total electricity capacity to come from non-fossil fuel sources by the year 2027 -- a significant increase over the India's Paris agreement targets, which has asked the member countries to reach 40 percent non-fossil fuel electricity by the year 2030.

Besides, car manufacturers like Tata and Mahindra, cab-hailing firms like Uber and Ola are also actively contributing to India's EV Mission.

In November, Uber tied up with Mahindra & Mahindra (M&M) to explore deployment of electric vehicles (EVs) on the cab aggregator's platform in several cities across India.

Ola, which spun-off an independent EV arm last year, has already launched fleet of over 200 electric vehicles in Nagpur last year and has recently raised whopping $1.4 billion just for its EV unit.

Source - Reuters, News18

No Subsidy on Electric Vehicles as Govt Fails to Build Consensus within its Agencies

Just few days ago, union cabinet had announced that it is considering to approve the proposal entailing financial support of Rs 9,381 crore in the second phase of the FAME (Faster Adoption and Manufacturing of Electric vehicles) India scheme II spanning 5 years to boost adoption of energy-efficient vehicles in the country.

Now in a latest development regarding same, under which it was expected that government will offer incentives/ subsidy to purchase electric and hybrid vehicles, the much awaited FAME-II scheme roadmap has been postponed to undeclared time as government think tank NITI Aayog and various ministries are having a tough time building consensus regarding future roadmap to boost electric mobility in India.

According to a report by MoneyControl, fostering a proper environment for electric vehicles “will take some time” as there is no final plan for incentives to be provided.

“Having a proper EV environment will take time... We still have to decide how (and how much) the incentives will reach the citizens,”, the report said citing government officials in the know of the daily.

Government of India had launched FAME scheme in 2015 for two years, to provide subsidy on purchase on electric vehicles. The scheme, which was first extended till March 2018, has, now, been extended till September 2018.

Under the scheme, government provides subsidy up to Rs 22,000 on two wheelers, Rs 61,000 on three wheelers and Rs 1,87,000 on four wheelers.

The problem with the launch of FAME-II scheme, which now has been deferred, is the way it has been structured. For an instance, the scheme talks about 20% subsidy or a subsidy of Rs 10,000 per kilowatt for car which is pointless as it’s not going to benefit anybody. “Apart from scooters, nothing will be sold," said the official citing reason behind postponement of the scheme.

It has been learnt that that the government will take time before finalizing the second phase of the policy i.e FAME-II. Ministries and NITI Aayog have suggested different plans to build environment for EVs in the country and consensus building is a problem right now, said another official in the report.

“An electric car, for example by Mahindra, has 14 kilowatt power which equals to a maximum subsidy of Rs 1,40,000. A car costing Rs 13 lakh with a subsidy of only Rs 1.4 lakh is not an attractive bid,” explained the official in the report.

Related Reading - Mumbai Startup Launches Cheapest Electric Car in Compact Segment

“There are multiple issues.. NITI Aayog says that we should start by pushing electricity based public transport system in two or three cities…They don’t agree with giving incentives on few two wheelers or few cars at hand,” he said, adding that ministries, on the other hand, want to push electric mobility pan-India by subsidizing the vehicles.

Road to electric mobility has been on hard luck since the beginning of this year as the government has dropped the idea of having an EV policy in place in the country. Earlier in February, transport minister Nitin Gadkari said that India does not need a dedicated EV policy. Instead the government may come out with an action plan.

Goods and Services Tax (GST) introduced last year has also hit the EV adoption in the country as in a weird tax slabs -- two wheeled electric vehicles is levied at the rate of 12%, while it is 28% for three wheeled electric vehicle.

Recently, government said that 30,000 slow charging stations and 15,000 fast charging stations will be set up over the next 3-5 years to improve electric infrastructure. It has also been reported that Rs 9,381 crore will be spent between 2018-19 and 2022-23 under FAME-II scheme, after cabinet nod is received. Government has also apportioned Rs 260 crore for FAME scheme in union budget for 2018-19.

Meanwhile, Hyderabad Metro Rail is planning to soon launch electric vehicle (EV) charging facility with vehicle-to-grid (V2G) concept at metro stations in partnership with PowerGrid Corporation of India Ltd. With this, Hyderabad Metro will be the first metro rail in the country to provide the facility.

In January 2017, a draft of India’s 10-year energy blueprint has revealed that the government is expecting as much as 57 percent of the country’s total electricity capacity to come from non-fossil fuel sources by the year 2027 -- a significant increase over the India's Paris agreement targets, which has asked the member countries to reach 40 percent non-fossil fuel electricity by the year 2030.

No Subsidy on Electric Vehicles as Govt Fails to Build Consensus within its Agencies

Just few days ago, union cabinet had announced that it is considering to approve the proposal entailing financial support of Rs 9,381 crore in the second phase of the FAME (Faster Adoption and Manufacturing of Electric vehicles) India scheme II spanning 5 years to boost adoption of energy-efficient vehicles in the country.

Now in a latest development regarding same, under which it was expected that government will offer incentives/ subsidy to purchase electric and hybrid vehicles, the much awaited FAME-II scheme roadmap has been postponed to undeclared time as government think tank NITI Aayog and various ministries are having a tough time building consensus regarding future roadmap to boost electric mobility in India.

According to a report by MoneyControl, fostering a proper environment for electric vehicles “will take some time” as there is no final plan for incentives to be provided.

“Having a proper EV environment will take time... We still have to decide how (and how much) the incentives will reach the citizens,”, the report said citing government officials in the know of the daily.

Government of India had launched FAME scheme in 2015 for two years, to provide subsidy on purchase on electric vehicles. The scheme, which was first extended till March 2018, has, now, been extended till September 2018.

Under the scheme, government provides subsidy up to Rs 22,000 on two wheelers, Rs 61,000 on three wheelers and Rs 1,87,000 on four wheelers.

The problem with the launch of FAME-II scheme, which now has been deferred, is the way it has been structured. For an instance, the scheme talks about 20% subsidy or a subsidy of Rs 10,000 per kilowatt for car which is pointless as it’s not going to benefit anybody. “Apart from scooters, nothing will be sold," said the official citing reason behind postponement of the scheme.

It has been learnt that that the government will take time before finalizing the second phase of the policy i.e FAME-II. Ministries and NITI Aayog have suggested different plans to build environment for EVs in the country and consensus building is a problem right now, said another official in the report.

“An electric car, for example by Mahindra, has 14 kilowatt power which equals to a maximum subsidy of Rs 1,40,000. A car costing Rs 13 lakh with a subsidy of only Rs 1.4 lakh is not an attractive bid,” explained the official in the report.

Related Reading - Mumbai Startup Launches Cheapest Electric Car in Compact Segment

“There are multiple issues.. NITI Aayog says that we should start by pushing electricity based public transport system in two or three cities…They don’t agree with giving incentives on few two wheelers or few cars at hand,” he said, adding that ministries, on the other hand, want to push electric mobility pan-India by subsidizing the vehicles.

Road to electric mobility has been on hard luck since the beginning of this year as the government has dropped the idea of having an EV policy in place in the country. Earlier in February, transport minister Nitin Gadkari said that India does not need a dedicated EV policy. Instead the government may come out with an action plan.

Goods and Services Tax (GST) introduced last year has also hit the EV adoption in the country as in a weird tax slabs -- two wheeled electric vehicles is levied at the rate of 12%, while it is 28% for three wheeled electric vehicle.

Recently, government said that 30,000 slow charging stations and 15,000 fast charging stations will be set up over the next 3-5 years to improve electric infrastructure. It has also been reported that Rs 9,381 crore will be spent between 2018-19 and 2022-23 under FAME-II scheme, after cabinet nod is received. Government has also apportioned Rs 260 crore for FAME scheme in union budget for 2018-19.

Meanwhile, Hyderabad Metro Rail is planning to soon launch electric vehicle (EV) charging facility with vehicle-to-grid (V2G) concept at metro stations in partnership with PowerGrid Corporation of India Ltd. With this, Hyderabad Metro will be the first metro rail in the country to provide the facility.

In January 2017, a draft of India’s 10-year energy blueprint has revealed that the government is expecting as much as 57 percent of the country’s total electricity capacity to come from non-fossil fuel sources by the year 2027 -- a significant increase over the India's Paris agreement targets, which has asked the member countries to reach 40 percent non-fossil fuel electricity by the year 2030.

Indian Govt To Setup ₹500 Crore VC Fund To Finance EV Startups in the Country

In 2015, government of India launched FAME India scheme, which stands for Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles India, to promote and finance eco-friendly vehicles in the country by incentivising all vehicle segments including 2-wheelers, 3-wheelers and buses.

Now, in a recent development union Cabinet is considering to approve the proposal entailing financial support of Rs 9,381 crore in the second phase of the FAME India scheme (FAME II) spanning 5 years to boost adoption of energy-efficient vehicles in the country.

Under FAME II, the government is also considering establishing of a venture capital (VC) fund of ₹500 crore in order to support startups related to electric vehicles (EV) in India. According to Start Up team of Invest India, currently there are about 136 startups related to electric vehicles in India.

According to government sources, EV startups are not getting access to required finance, as financial institutions are reluctant to extend credit facilities to them because of their high-risk nature, which is the main reason for government to setup an exclusive VC fund for EV startups.

The principal purpose of the venture capital funding will be for development of zero emission vehicle and its component manufacturing base, making prototype to manufacturing and development of R&D, promoting work on alternative battery chemistries among others.

In an another good news, under proposed FAME II, large EV components such as motor, drive powertrain and controller which are currently not covered under modified special incentive package scheme (MSIPS) of the Ministry of Electronics and Information Technology have been proposed to be given capital investment subsidy at a rate of 20-25 per cent of capital investment.

However, it is to be noted that unlike phase-1 of FAME India Scheme, the FAME II will be restricted to new energy vehicles used for public transport (passenger vehicles), commercial purposes/vehicles and high-speed two-wheelers, and not for privately owned vehicles, which is a setback not only for India's mission to go fully electric on roads by 2030 but to EV segment startups in the country too, as the chances that the vehicles these startups are manufacturing goes in larger consumer base will be diminished for not subsidizing the e-vehicles for private owners.

Notably, the government has dropped the idea of having an EV policy in place in the country. Earlier in February, transport minister Nitin Gadkari said that India does not need a dedicated EV policy. Instead the government may come out with an action plan.

In February only, the Society of Manufacturers of Electric Vehicles (SMEV), an industry body, has reportedly sought a meeting in this regard with Amitabh Kant, who is spearheading the centre’s EV action plan. Kant is also CEO of NITI Aayog, the policy think tank of govt. of India. SMEV also aproached PMO to get a clarity on EV policy in India, but then nothing substantial took off to date.

In a joint study conducted with the US-based Rocky Mountain Institute, the NITI Aayog last year identified incentives that would boost EV manufacturing in India.

The report, called as Transformative Mobility Solutions for India revealed India's plan for electric cars and charging stations infrastructure.

In January 2017, a draft of India’s 10-year energy blueprint has revealed that the government is expecting as much as 57 percent of the country’s total electricity capacity to come from non-fossil fuel sources by the year 2027 -- a significant increase over the India's Paris agreement targets, which has asked the member countries to reach 40 percent non-fossil fuel electricity by the year 2030.

Via - Times of India | Top Image - WestCorkTimes.com