FAME
II was launched under National E Mobility Mission Plan [ NEMP – 2012 ]
It
was to cover period > April 2019 – March 2022 ( 3 years )
It
had very modest targets re production / sale of Electric Vehicles, for which a
provision of Rs 8596 crore
was made towards “ subsidies “ to buyers purchasing EVs
Nearly
one-and-half year ( half of cover period ) is
over and the “ Actual Achievements “ are heart-breaking ( for want of a better
word and in order not to blame any particular person/s )
I
did envisage the likely problems – as also some “ Course
Corrections “ required, and sent following e-mail to Policy Makers :
FAME II > FAME III
> FAME IV …………………………….[ 05 March 2019 ]
In
that e-mail , I had made some “ guestimates “ of the number of EVs that might
get sold, in each of those 3 years .
Following
is a tabulation from my above-mentioned
blog / email ( except for the last column which I inserted today, based
on following news report that appeared in Economic Times of 20th Oct ) :
FAME II Scheme for
EVs far away from its destination
Extract :
Ø The number of
vehicles subsidized from April 2019 till the end of last month was fewer than 2 % of the
target for the scheme period , government data showed
Ø FAME II …has a budget
of Rs 8596 crore for giving subsidies alone, but just Rs 77.3 crore or less than 1 % of that
was spent till the end of September
Ø These regulations
made the EVs pricier than imported vehicles even after the subsidies
Ø 800+ New stores set
up in 2019 sold cheaper EVs imported from China
|
Type of Veh |
17-18(Actual) |
18-19(Est) |
19-20(Est) |
20-21(Est) |
3yr total(E) |
3yr Target |
%age likely |
Actual Achieved till
Sept 2020 |
|
Buses |
200 |
500 |
750 |
1000 |
2,250 |
7090 |
32 |
|
|
Cars ( Hy ) |
Nil |
500 |
1,000 |
2,000 |
3,500 |
20,000 |
17.5 |
|
|
Cars ( E ) |
1,200 |
3,000 |
5,000 |
7,000 |
15,000 |
35,000 |
43 |
1,295( 2.35 %) |
|
3 Wheelers ( excluding E - Ricks with less than 5 KWh battery ) |
132,000 ( all sold were under 5 kwh battery, which do not qualify for
subsidy ) |
10,000 ( with battery bigger than 5 KWh ) |
15,000 |
25,000 |
50,000 |
500,000 |
10 |
6,836 ( 1.36 % ) |
|
2 Wheeler |
58,400 |
75,000 |
100,000 |
125,000 |
300,000 |
1,000,000 |
30 |
21,727 ( 2.17 % ) |
In my e-mail, I listed following “ Shortcomings
“ of FAME II :
# It focuses solely on “ Incentivizing
the Buyers “ through subsidies
production or
commercialize “ cost
matter of Lithium-ion batteries which constitute up to 40 % of EV ex-factory
price
Diesel vehicles
# Linking the subsidy amounts with battery size is not the right method. In fact
a vehicle with a smaller size
range – charging time etc ) as a vehicle with a bigger battery, should be
rewarded with higher subsidy !
Efficient use of input resources must be
encouraged
petrol / diesel vehicles
And that e-mail also
included following suggestions to accelerate adoption of EVs :
===================================================
[ A ]….. MANUFACTURERS
( A.1 ) Policy Instrument > Corporate Income Tax for Incentivizing the
manufacturers of
Batteries
Total exemption of Corporate Income Tax for companies exclusively
engaged in the manufacture of :
# Aluminium-Air Batteries ( No need for any roadside battery
charging stations ! )
# Sodium-ion Batteries ( Reduce battery cost to 10 % of Lithium-
ion Battery cost ! )
# Fuel Cell ( based on hydrolysis ) developed by CECRI ( literally
FREE electricity and zero
# Other developments in fast-charging batteries ( under 5 minutes
for 80 % charge )
A.2 ) Abolish Corporate Income Tax ( for 10 years ) for the entire E
Mobility Eco-System
( A.3
) Incentivizing the E Vehicle manufacturers
# E Cars having Solar Rooftop powering a small Li-ion Battery
# Policy
Instrument > Carbon Credits
Based on car specifications / assumed average monthly usage etc ,
figure out and fix,
* " Carbon Credits " for
each model of electric car manufactured
* Based on Carbon Credits earned , calculate Direct Transfer of
Benefit ( DTB ) to electric
dispatches of each model and then transfer these amounts from
EVFF ( Electric Vehicle Finance Fund ) , as incentives to
manufacturers
( A.4 ) Dis-incentivize manufacturers for production of Petrol / Diesel
vehicles
This could be achieved by gradually raising the GST rate for such
vehicles, starting
from April 2022
reduction in the GST rate for Electric vehicles
( A.5 ) Incentivizing
manufacturers to get into the “ Recycling of Old Vehicles “
By ordering to stop usage of old vehicles in Delhi, already a serious
problem has arisen in respect of
applied on all-India basis, this could lead to millions of old vehicles
getting “ abandoned “ and cluttering the city-scape
=================================================
[ B ] BUYERS
( B.1
) Incentivize for purchase of E Vehicles – especially, leasing of
buses
Provide depreciation to
private individual buyers
( B.2 ) Incentivize Retro-fitting of old Petrol / Diesel vehicles ( non-
compliant with BS VI norms )
Give subsidies to “Current Owners of Old Vehicles “ at 150 % of
subsidies announced under FAME II
( B.3 ) Incentivize to
switch-over to E Bikes
( B.4 ) Policy Instrument > Taxing all Vehicles based on their “ Harm
Quotient “ for environment
Dis-incentivize purchase of Petrol / Diesel
vehicles
==============================================
[ C ] GOVERNMENT
( C.1 ) P0licy
Instrument > Wet
Leasing
==============================================
[ D ] PASSENGERS OF PUBLIC TRANSPORT ( Non-Vehicle
Owners )
For taxis / rickshaws running on Hybrid fuel ( producing less Co2 ) or
Electric Vehicles (
zero emission ) ,
get " Carbon Credits " , which will also get displayed on the DigiMet as
also on the FareCalc Mobile App on the smart phone of the passenger ( @
20 % of the fare payable ? )
Accounts ( thru DTB ) , every quarter
==============================================
[ E ] SOLAR POWER for ELECTRIC VEHICLES
Policy Instrument > Amendment to Electricity Act
Anyone can generate and SELL electricity , anytime and to anyone and
at any price !
==============================================
Policy-makers interested in details of each of the
above-mentioned suggestions , may look up :
FAME II > FAME III
> FAME IV …………………………….[ 05 March 2019 ]
===================================================
Dear
Shri Nitin Gadkariji / Shri Piyush Goyalji / Shri R K Singhji,
It is not as yet, too late to “ salvage
“
FAME II , from being an ignominious chapter of
“ India’s EV journey into a
tunnel of Darkness “
With regards,
Hemen Parekh / hcp@RecruitGuru.com / 21
Oct 2020