The Indian Federation of Green Energy (IFGE) has proposed extending the FAME-II policy for another two years, praising the government's efforts to boost the nationwide adoption of electric vehicles (EVs) and promote sustainable transportation through various initiatives.
IFGE has suggested the government to expand the Electric Mobility Promotion Scheme (EMPS) to include all facets of the EV sector. Despite a reduction in overall subsidies, there's still potential for improvements in this area. Manufacturers are also encountering difficulties in obtaining fresh vehicle certifications, adding another layer of challenge for them.
Mr. Sanjay Ganjoo, Director General of the Indian Federation of Green Energy (IFGE), highlighted the crucial importance of creating a supportive policy environment to fuel the growth of this sector. "IFGE urges the government to heed this call and take the necessary steps to enable such growth. IFGE urges the government to align along these lines and take the necessary actions to facilitate this growth," the release read.
Earlier this month, the Ministry of Heavy Industries had unveiled the EMPS with a focus solely on electric two and three-wheeler manufacturers. This scheme will act as an extension of FAME-II and has a budget of Rs 500 crore allocated for a four-month period until July 31. Around 3.72 lakh electric two and three-wheelers are expected to benefit from the subsidy under this initiative.
The EMPS 2024 mandates vehicle manufacturers to acquire new vehicle certification. It excludes four-wheelers and buses from subsidy eligibility and reduces the overall quantum of subsidies for two-wheelers.
