The Ministry of Heavy Industries has undertaken a series of noteworthy initiatives aimed at fostering sustainable development and controlling carbon emissions. These initiatives primarily revolve around the promotion of electric vehicles (EVs), the reduction of carbon emissions, and aligning with the nation’s commitment to achieving net-zero emissions.
Under the second phase of the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) India Scheme, an impressive count of 1,016,598 electric vehicles have received support through demand incentives, totaling approximately Rs 4,807 crores. This substantial support has resulted in significant fuel savings amounting to around 26,041,426 liters and a remarkable reduction of approximately 37,718,893 kilograms of CO2 emissions. This remarkable progress is a testament to the government’s commitment to curbing carbon emissions, especially considering that electric vehicle sales, which were negligible in 2014, have now surged to make up roughly 5 percent of total vehicle sales.
In a proactive move, the Ministry of Heavy Industries has substantially increased the subsidy budget for electric two-wheelers under the FAME-2 scheme, raising it from Rs 2,898 crores to Rs 5,172 crores for the fiscal year 2022-23. This decision has paved the way for an estimated 710,000 electric two-wheelers to benefit from FAME-2 subsidies by the close of 2022.
The FAME-2 scheme, initially launched with a budget of Rs 10,000 crore for a three-year term starting April 1, 2019, introduced a subsidy of Rs 10,000 per kilowatt-hour (kWh). However, due to the adverse impact of the COVID-19 pandemic on the demand for electric two-wheelers, the government temporarily increased the subsidy to Rs 15,000 per kWh. Subsequently, in June 2023, the subsidy was reverted to its original amount of Rs 10,000 per kWh, albeit with the caveat that the maximum subsidy cap was reduced from 40 percent to 15 percent for vehicles priced up to Rs 1,50,000.
Industry experts assert that India will require incentives amounting to at least Rs 1.65 lakh crore over the next seven years to meet its ambitious 2030 target for sustainable and green mobility. These measures taken by the Ministry of Heavy Industries signify the government’s dedication to steering the nation toward a more environmentally conscious and sustainable future.
Disclaimer: The views, suggestions, and opinions expressed here are the sole responsibility of the experts. No Nook Explorer journalist was involved in the writing and production of this article.