NITI Aayog declares EV incentives with Fame II Subsidy

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Electric vehicle changing on street parking with graphical user interface, Future EV car concept

Government think-tank Niti Aayog has said the govt should provide incentives on electric vehicle (EV) purchase over and above the prevailing subsidy under the Faster Adoption and Manufacturing of Hybrid and EV (FAME-II) scheme.

The Niti Aayog in its established order analysis of electrical mobility in India also said the government should include EVs and associated businesses within the priority sector lending category.

“The government should give EV purchase subsidy over and above FAME-II subsidy alongside interest subvention on loan amount taken for EV purchase,” the Aayog said.

It further pitched for creation of non-financial incentives, including priority lanes and exclusive parking for EVs in commercial complexes.

EV Charger
This is an EV charger which is connected to the car.

The Aayog also recommended providing interest subvention on loans taken for EV purchase.

It also said green zones should be demarcated within cities that let only EVs, and heavy taxes should be charged on conventional fuel vehicles.

“Green corridors should be earmarked on which only e-buses are provided permit to work ,” the Aayog said adding that a national-level policy should be formulated for incentivising distribution utilities on investing in development of EV charging infrastructure.

It also emphasised that financial institutions should be encouraged to increase their lending facility to the electrical mobility sector.

“Allow charging infra developers to use a particular percentage of allotted land to open public amenities, like cafeteria and food zones, to possess additional revenue stream to make sure sustainability of business (Madhya Pradesh EV policy has made similar provision),” it said.

The Aayog also suggested that the electricity regulator should be mandated to supply a mechanism for approval of rate-basing of utility investments in building EV charging infrastructure.

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EV Charger’s mouth

It also pitched for providing opportunity to battery swapping stations to participate in real-time and ancillary service markets.

The government has notified the National Electric Mobility Mission Plan 2020, which seeks to reinforce national energy security, mitigate adverse environmental impacts from road transport vehicles and boost domestic manufacturing capabilities for EVs.

In addition to the present , the government has notified the FAME-II scheme to stimulate the country’s EV market, de-licensed the charging infrastructure business, and specified guidelines and standards for charging infrastructure for electric vehicles.

Currently, the general share of EVs and low-carbon road transport technology within the total vehicle sales within the country stands at but 1 per cent.

Although, several policy measures are taken to extend adoption of unpolluted mobility in India. However, the country remains awaiting to witness a large-scale adoption of EVs.

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