INTRODUCTION

Sustainability in the Indian mobility industry is at a crucial juncture, given problems such as urban pollution, climate change, and dependence on foreign oil. In light of this, the Indian government's goal of advancing electric vehicles is implemented as part of NEMMP2020. The plan that aims to produce electric vehicles includes the FAME program. 

THE HISTORY OF THE POLICY

The purpose and objectives of the policy are:

The FAME program was introduced by the Indian government with the goal of using incentives

to advance electric car technology.    

The      following      are      the      objectives: 

1. Low adoption of electric vehicles

2. Restricted ecology for domestic manufacturing Among the main goals are:

•        Using incentives to increase demand for EVs

•        To encourage production in India according to the Make in India strategy

•        To reduce dependence on non-renewable energy resources and emissions from vehicles

•        Promotion of technology development for electric vehicles

Scheme Phases

FAME-I (2015 – 2019)

•      Awareness creation and demand generation of electric vehicles was the key objective of FAME I. The scheme provided incentives for:

•      Two-Wheelers, Electric Buses, Four-Wheelers, and Three-Wheelers 

•      Technology Platforms & Pilot Projects

•      Charging Infrastructure (limited scope)

FAME-II (2019 onwards)

Unlike its previous version, FAME II had plenty of budgetary support coupled with a welldefined policy structure.

•      Electrification of Shared & Public Transport

•      Infrastructure expansion for charging

•      Tighter requirements for incentive eligibility

•      Component localization

Scope and Applicability

The program is applicable throughout the country and seeks to:

•      Individual customers

•      Public transportation organizations

•      Operators of fleets

•      EV and component manufacturers

This program is being run by the Ministry of Heavy Industries, in cooperation with state governments and other industrial partners.

ASSESSMENT OF POLICY

Coverage

FAME II greatly increased coverage, especially in: FAME I established the groundwork by rewarding early users.

•      Electric vehicles for public transportation

•      Electric three-wheelers (auto-rickshaws)

•      Electric two-wheelers with high speed

Yet, due to the higher cost of investment initially and the lack of adequate infrastructure, the use of private electric vehicles is still limited.

Quality

FAME II set higher standards for:

•      Requirements for minimum battery capacity

•      Thresholds for localisation

•      Incentives based on performance

The quality and dependability of EVs in the Indian market have increased as a result of these actions. But there are still problems with:

•      Battery life

•      charging system standardisation

•      networks of after-sale services

Sustainability

This program plays an important role in contributing to the sustainability of the environment due to:

•  Decrease in greenhouse gas emissions

•  Improvement of air quality in urban environments However, problems arise from:

•  Battery recycling and disposal

•  Reliance on importing rare earth metals and lithium

Therefore, no matter how environmentally friendly they are while in use, it is imperative to have increased legislation on sustainability issues through their entire life cycle.

Stakeholder Reactions

The scheme has received mixed but largely positive feedback:

Positive aspects:

•  Increase in sales of electric vehicles (EVs), particularly those with two or three wheels

•  The emergence of new entrants in the market for EVs

•  Increased investor interest Points raised in concern:

•  Subsidy distribution delays

•  Policy shifts that affect planning

•  Heavy manufacturing compliance

COMPARATIVE ANALYSIS THROUGH FOREIGN MODELS

A critical assessment of the JNNSM, relative to other cases, is immensely useful in bringing out the strengths and weaknesses of the system.

EU (European Union) The EU prioritizes:

•      Tight emission regulations

•      Rewards for the use of EVs

•      Infrastructure development for charging

•      The EU combines the EV strategy within a larger context of climate goals as well as urban transportation plans, unlike India.

United States:

The United States relies upon:

•      Credits for federal taxes

•      State-level rewards

•      Innovation in the private sector

The U.S. model is more innovation-driven but less centralized than FAME. China

China has become a global leader in the adoption of EVs by:

•      Huge subsidies

•      robust domestic manufacturing sector

•      Management of battery supply networks

It is also more aggressive than FAME in its implementation and relies heavily on the state, enabling swift scaling.

LIMITATIONS AND GAP

1. Lack of Charging Points

The lack of charging points is a considerable obstacle in the implementation of electric cars.

2. Higher Upfront Cost

Electric vehicles are costly in comparison to standard cars, especially in their initial stages of deployment.

3. Dependency on imports

India is largely dependent on imports for:

•      Lithium-ion batteries

•      Essential raw materials

4. Uncertainty in Policy

Manufacturers and investors experience uncertainty due to frequent modifications in eligibility requirements and subsidy arrangements.

5. Insufficient Attention to Rural Areas

Rural acceptance of the program is comparatively limited, as it largely serves metropolitan areas.

SUGGESTIONS FOR POLICY

The following changes are recommended to improve FAME's efficacy:

1. Increase the infrastructure for charging

•      Expand public-private collaborations

•      Encourage private charging stations

•      Standardize the procedures for charging

2. Encourage the Production of Domestic Batteries

•      Promote gigafactories

•      Encourage the development of alternative battery technologies

•      Decrease dependency on imports

3. Assure the Stability of Policy

•      Give long-term incentive clarification

•      Steer clear of sudden changes in regulations

•      Increase investor trust

4. Enhance the Recycling Environment

•      Formulate rules for battery recycling.

•      Encourage the use of the circular economy

5. Make It More Affordable

•      Offer more alternatives for financing

•      Lower the GST on EV parts

•      Provide specific subsidies to customers with low incomes.

6. Promote Adoption in Rural Areas

•      Encourage the use of electric two- and three-wheel in rural regions

•      Create solutions for decentralized charging

FULFILLMENT OF INTERNATIONAL STANDARDS

The FAME scheme adheres to the following criteria:

•  Commitment to international climate agreements by India

•  SDGs targets

•  Targets for national oil consumption reduction

However, in order to ensure that EVs run on clean sources of energy, more linkage is required between renewable energy policy and EVs.

CONCLUSION 

Another important move in this regard is the implementation of the FAME program. Though the previous one was successful in creating the movement, the more defined and efficient approach in the second phase has improved the system considerably.

However, there still is much more to accomplish that involves overcoming obstacles like policy instability, import dependency, and insufficient infrastructure. India can take up the role of a leader in electric mobility by taking up a holistic approach that consists of manufacturing, sustainability, infrastructure, and innovation.

The most important thing to do in order to create a self-sufficient and easily accessible ecosystem for electric vehicles will be more crucial than anything else.

Author(s): Dewanshi Bhatt