To push the Electric vehicle business in India, The Indian Government has once again revised the FAME II (Faster Adoption and Manufacturing of Electric vehicles – second phase) norms.
What are these new updates on the Fame II norms?
- According to the new update, The government has increased the incentive by almost 50% to Rs. 15,000 per Kwh from Rs 10,000 per KWh for all-electric vehicles (EVs) and hybrids.
- These exclude heavy vehicles such as buses.
- Additionally, The Department of Heavy Industry has also capped the incentives for electric two-wheelers to 40% from the previous 20%.
- These incentive has now been limited to two-wheelers as of now.
- It is expected that these new updates for four-wheelers in the coming time.
It is pretty evident that the government is trying to push the sale and purchase of electric vehicles in the country.
The government has also that these norms will be in effect under the EESL (Energy Efficiency Services Limited). This step is being taken to bring the cost of electric 3-wheelers.
What is the need for an Electric Vehicle Policy?
- According to the chief minister, this policy aims towards reducing air pollution. It has however reduced by over 25% over the past 5 years. With this policy, the government aims to reduce it much further in the nearing future.
- Additionally, The new EV policy aims towards making new job opportunities. It will boost the economy which has taken a huge hit due to the ongoing Coronavirus pandemic.