FAME Scheme Extension Needed for EV Growth: Kinetic Green CEO

Gandhinagar, Jan 11 (PTI) A continuation for five years of demand incentive under the FAME scheme will help increase penetration of electric vehicles to 25 per cent from the current 5 per cent in India, Kinetic Green Founder and CEO Sulajja Motwani said on Thursday.

Motwani, who is also the FICCI National EV Committee Chair, said while India has made a good start towards electric mobility, the next five years will be crucial to establish electric as the preferred technology for mobility amongst consumers.

Speaking at Vibrant Gujarat Global Summit here, she said the FICCI committee had submitted a comprehensive recommendation, including continuation of the FAME scheme, to the government for acceleration of electric mobility.

"Certainly, a five-year long term consistent approach to the policy with a five-year demand scheme to take India from 5 per cent to 25 per cent, will be a great step for our nation," she said.

At present, Phase-II of the FAME India scheme is being implemented for a period of five years from April 1, 2019 with a total budgetary support of Rs 10,000 crore. It is set to expire on March 31, 2024.

Motwani said India has started well towards electric mobility but the next five years will be crucial for demand generation and establish electric as the preferred technology for customers.

While current level of EV penetration is not significant, she said a recent survey showed that around 25 per cent of customers who are thinking of buying a two-wheeler are considering electric two-wheelers.

"That's a big change in the mindset of people moving in a positive direction, but there's a long way to go," Motwani said.