Policies like FAME need to be supplemented with measures such as domestic manufacturing of vehicles, batteries and components to boost mass adoption of electric vehicles by 2030, CII said.
Faster Adoption and Manufacturing of Hybrid and Electric Vehicles or FAME-II scheme alone is not enough to reach the 2030 target, said the Confederation of Indian Industry (CII).
By 2030, India is aiming to achieve 100 per cent electrification of three-wheelers, commercially used four-wheelers as well as public transport vehicles, and 40 per cent electrification in private two-and four-wheelers.
The country is also aiming to reduce oil imports by 10 per cent by 2022.
While the industry body backed the Centre’s revised FAME-II scheme, it noted that more needs to be done to increase EV penetration in India, which is currently stands at just 1 per cent.
Policies like FAME need to be supplemented with measures like market creation and adoption; domestic manufacturing of vehicles, components and batteries; strategic sourcing of key raw material and skill development in India to boost mass adoption of electric vehicles by 2030, it said.
This would result in a reduction of 156 million tonnes of oil equivalent in diesel and petrol consumption in 2030 and net saving of approximately USD 60 billion in 2030 at present oil prices.
For transport to go truly green, it must also be accompanied by a rising share of renewables along with environmentally sustainable batteries, it added.
FAME-II scheme will help boost India’s fuel security
The Union Cabinet has cleared a ₹10,000-crore programme under the FAME-II scheme to promote electric and hybrid vehicles. The scheme is being implemented over a period of three years with effect from April 1, 2019.
FAME-II is the expanded version of the present scheme FAME India I which was launched on April 1, 2015, with a total outlay of ₹895 crore.
“The main aim of the scheme is to encourage faster adoption of electric and hybrid vehicle by way of offering upfront incentives on purchase of electric vehicles and by way of establishing a necessary charging infrastructure,” a CII statement said.
“The scheme will not only help in addressing the issue of rising environmental pollution in cities but will also help in India’s fuel security,” it added.
(With inputs from The Hindu and PTI)