India may shift EV subsidy focus to charging infrastructure, say sources
- ByStartupStory | April 18, 2023
India’s next set of subsidies to promote the adoption of electric vehicles (EVs) may focus on charging infrastructure, as the government plans to shift its focus from consumer subsidies to a more sustainable approach. According to three sources, the current focus on consumer subsidies under the FAME II scheme may not be enough to keep up with the rapid pace of EV adoption in the country. Instead, policymakers and industry representatives have agreed that the next set of subsidies should be directed towards building a robust public charging infrastructure.
The FAME II scheme, launched in 2019 with a capital outlay of Rs 10,000 crore over three years, was aimed at supporting the adoption of EVs among consumers. The scheme focused on subsidising shared electric transportation and two-wheelers. FAME II achieved close to 90% of its target, said a NITI Aayog official.
“Now that the gears have started moving (when it comes to consumers purchasing EVs), industry representatives and policymakers are agreed that the next set of subsidies should be on public charging infrastructure,” said a member of an EV industry body that consists of major private players in the domain. Oil and gas companies are also exploring ways to make EV charging as convenient as traditional fueling by establishing charging stations at existing petrol pumps.
According to a source at NITI Aayog, discussions are underway to offer land to charging infrastructure companies at subsidised rates, provide cheaper electricity, and allocate special zones on highways for charging stations. “We’re still engaging with the industry stakeholders and policy-level folks to map this out, and nothing has been finalised yet. We’re still a year away from FAME II coming to an end, but this is the direction we seem to be going in at this point,” said the source.
The shift towards subsidising charging infrastructure could be a game-changer for the EV industry in India, providing a much-needed boost to EV adoption while also promoting sustainable growth. With the right incentives, India could become a leader in EVs and sustainable transportation
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