Government of India approach
As the world moves towards clean and eco-friendly mobility fuel alternatives, the Government of India (“GOI”) is playing its part by framing environmental-friendly policies & regulations and encouraging the use of electric vehicles (“EVs”) in the country. The National Electric Mobility Mission Plan, 2020 had launched the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (“FAME Policy / Scheme”) in the year 2015. The FAME Policy was launched in two phases. FAME – I provided direct subsidies and grants for specific projects along with financial support for R&D, technology enhancement and public charging infrastructure. FAME-II, introduced in 2019 with a budgetary outlay of INR 10,000 crore, envisioned driving large-scale adoption of EVs, EV-related infrastructure and EV ecosystem development. Despite these efforts the EV market penetration currently stands at merely 3% of India’s total vehicle sales.