The Associated Chambers of Commerce and Industry of India (ASSOCHAM) has called for a range of measures to accelerate the decarbonisation of the country’s transport sector, including an extension of the FAME scheme for electric vehicles (EVs) and a new production-linked incentive (PLI) scheme for charging infrastructure.
In its latest report, “Building India an Electric Mobility Hub for Viksit Bharat,” ASSOCHAM recommends continuing the FAME (Faster Adoption and Manufacturing of Hybrid & Electric Vehicles) scheme for an additional three to five years to ensure the EV market matures. The industry body also advocates for the continuation of benefits for both electric vehicles and hybrids (HEVs), with EV benefits potentially linked to battery size.
ASSOCHAM suggests introducing a new PLI scheme to incentivise the development of charging infrastructure and upstream battery processes, with a separate tranche for small and medium enterprises (SMEs). Additionally, it proposes subsidy schemes targeted towards the testing and validation of EV components to accelerate the launch of quality products.
The report, released this month, also urges India to target expanding its exports of EVs and components to smaller, fast-developing economies such as those in South East Asia, Latin America, and the Middle East and North Africa (MENA) region.
To facilitate the growth of charging infrastructure, ASSOCHAM recommends enhanced support from urban infrastructure development boards to charge point operators (CPOs) to identify appropriate spots for setting up charging stations. Furthermore, the industry body advises against government intervention in forced standardisation of fast-charging protocols or battery swapping for the next three years.
The recommendations come as India aims to reduce its carbon footprint and dependence on fossil fuel imports. The government has been promoting electric mobility through various initiatives, and ASSOCHAM’s proposals seek to build on these efforts to create a robust EV ecosystem in the country.
