Umbrella organisation of auto industry, Society of Indian Automobile Manufacturers (SIAM), in its 56th Annual Convention on Wednesday, urged the Government to increase the outlay under the Faster Adoption and Manufacturing of Hybrid and Electric Vehicle (FAME) scheme.
“We request the Government to come out with the much larger outlay. It is important that the very scheme, which is today applicable only in some cities, is extended to the entire country,” said SIAM President Vinod Dasari.
“There is an urgent need for creating a roadmap on emissions, safety and fuel efficiency regulations that can provide us a clear direction for 5-10 years,” added Dasari.
This is the second year of the two-year pilot FAME scheme and the industry witnessed encouraging response from the customers.
“More than 80,000 electric and hybrid vehicles have been sold till now,” he added.
To promote eco-friendly vehicles, the Government had formally launched the FAME India scheme last year offering incentives on electric and hybrid vehicles of up to Rs29,000 for bikes and Rs1.38 lakh for cars.
While addressing the SIAM convention, Heavy Industries Minister Anant Geete said: “The environment is one of the biggest concerns for the sector. We have, therefore, allocated Rs14,000 crore for the FAME scheme for promoting hybrid and electric mobility, which will save Rs60,000 crore fuel, thereby benefitting the environment.”
However, he also added it is a proven fact that burning of fuel is not the only reason for pollution.
FAME India is a part of the National Electric Mobility Mission Plan. The scheme envisages Rs795 crore support in the first two fiscals starting last year.
The minister further said the FAME scheme is for the entire country and any consumer can take advantage of this. Assuring full support to the auto industry, the minister hoped the implementation of GST law will help the sector most.
The auto industry will be benefited from the ease of doing business and reduction in excise duty, Geete added.
Further, he said India is a country of young population and the auto industry should take benefit of this demographic dividend.
He also asked the auto industry body SIAM to indulge in continuous dialogue with the Government to raise their issues and concerns.