FAME 2: Will encourage associated industries to invest into the EV Sector, Naveen Munjal, MD, Hero Electric
The second phase of the FAME scheme has been announced wherein a budget of Rs 10,000 crore will be implemented in three years (2019-2022). This initiative is being seen as a major boost to the electric vehicle (EV) segment in India which is still at a nascent stage. In addition to commercial vehicles, public transport STUs, the FAME 2 scheme will also be offering subsidy on electric two-wheelers from April 1, 2019. Below is the reaction of the Naveen Munjal, MD, Hero Electric Vehicles Pvt. Ltd on the company's expectations from FAME 2.
"We welcome the government's decision for approving FAME II policy to have a long term framework with an emphasis on Electric two and three wheelers. We at Hero Electric are fully committed to working towards enhancing the Government's vision of strengthening the Electric Vehicle Ecosystem and look forward to a conducive policy keeping in mind the concerns and expectations of the industry. This new policy will encourage associated industries to invest into the EV Sector thereby creating a healthy and widespread Ecosystem. While the move to implant this policy will promote sustainability and will encourage faster adoption of electric and hybrid vehicles, the new policy outlay for electric 2 wheelers should not only focus on the battery power but also on speed and range of the vehicles.
Majority of the Electric 2 Wheelers are sold in the belly of the market segment and do not require very large batteries and power and operate at City speeds of 30-35 kmph, and by keeping the subsidy based only on battery power may result in increase in cost of the electric two wheelers in this segment. We would urge the Government to consider the same and look forward for a positive growth of the industry. We await the final notifications from the concerned ministries which would give us further clarity on the roadmap ahead."