THE YEAR WAS 2015. Among the many things Arun Jaitley, then the Union Finance Minister, announced in the Budget, were two sentences on a new scheme to promote the use of electric vehicles (EVS) in India.
As beginnings go, this one was quite modest. Jaitley set aside all of ₹75 crore for the first year of the scheme, later christened Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India, or FAME. In the first phase that ended on March 31, 2019, a total of ₹895 crore was spent.
And that's when the Centre decided to raise the stakes. For the second phase, FAME II, the outlay was increased to ₹10,000 crore. It proved popular, and the government hiked the demand incentive for electric two-wheelers to ₹15,000 per kilowatt hour (kWh) of battery or up to 40 percent of the cost of an electric scooter, up from ₹10,000 per kWh. The idea was simple: The government would provide incentives to buyers in the form of an upfront reduction in the purchasing price of EVs. Till the end of December 2022, a total of 743,000 electric vehicles were incentivised, and 2,877 EV charging stations were approved under the FAME II scheme.
But this smooth ride hit a rough patch some months ago after the government received emails and letters from a whistle-blower claiming that certain EV makers were not complying with the localisation norms that were part of the scheme. An investigation was ordered by the Ministry of Heavy Industries (MHI) and violations were found. This soured the mood and put into question the extension of the scheme beyond 2024, when the current one ends.
In the immediate aftermath of the investigation, the MHI reduced the 40 percent maximum incentive cap to 15 percent for electric twowheelers (not three-wheelers and buses). It also lowered the demand incentive from ₹15,000 per kWh of battery to ₹10,000 per kWh. These amendments came into effect from June 1, 2023.
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
"Focus on the challenge of each customer"
SHASHANK KUMAR MD & CO-FOUNDER I RAZORPAY Razorpay is India's first full-stack financial solutions company
PEDAL ON THE FUTURE
THE MG WINDSOR EV, WITH ITS FUTURISTIC AND MINIMALIST DESIGN, COMBINES THE BEST OF BOTH WORLDS-COMFORT AND TECHNOLOGY
BREATHE EASY
Whether you're battling allergies, looking to remove pollutants, or simply want to breathe easier, the right air purifier can make a difference
The Taste of India in a Glass
FROM ROYAL LIQUEURS TO DISTILLED MAHUA, INDIAN HERITAGE ALCOHOLIC BEVERAGES ARE HAVING THEIR DAY IN THE SUN
LOOK BEFORE YOU LEAP
IN 2025, INVESTORS WILL NEED TO FACTOR IN VOLATILITY ACROSS ASSET CLASSES
MISSING ADVISORS
INDIA HAS JUST ONE INVESTMENT ADVISOR FOR NEARLY EVERY 200,000 INVESTORS. AT A TIME WHEN RETAIL PARTICIPATION IN THE STOCK MARKETS IS BOOMING, THIS ASSUMES SIGNIFICANCE
TURNING A CORNER
SHARED ELECTRIC MOBILITY START-UP YULU'S SHIFT TO SERVICING THE QUICK COMMERCE SECTOR IS HELPING IT GROW FAST. IT IS NOW FOCUSSING ON IMPROVING ROAD SAFETY FEATURES AS IT TURNS EBITDA POSITIVE
REALITY CHECK
INDIAN STOCK MARKETS PLUNGED BEGINNING OCTOBER FOR A HOST OF REASONS, INCLUDING A FALL IN FII OWNERSHIP. HOW DEEP WILL THE CORRECTION BE?
TRUMP'S TRADE TANGO
The return of Donald Trump as the 47th President of the US has put the global economy on edge. India, too, is unlikely to remain unaffected. How will policymakers meet this latest challenge?
"The essence of the Trump administration will be transactional”
Global investor, analyst, and best-selling author Ruchir Sharma decodes why Donald Trump won the elections, what India should do, the risks, and more
