The union budget which was decided for the year for 2015-16 saw the formation of FAME India (Faster Adoption and Manufacturing of Electric and Hybrid Vehicles in India) policy implemented by the Central government. Even though it was an appreciable step taken for faster adoption of eco-friendly vehicles on roads, the sale of electric vehicles has not seen any significant growth, a sentiment that is echoed by Sohinder Gill, Director, Society of Manufacturers of Electric Vehicles (SMEV).
Until now, some manufacturers have introduced mild hybrid variants of their existing products. However, these have a marginal effect on emissions and crude oil consumption. Such vehicles being easy to develop apparently have taken away a large share of the FAME incentive and have created a false sense of achievement on the National Electric Mobility Mission Plan (NEMMP) policy.
Commenting on the Union budget, Sohinder Gill said, "To reduce India's humungous fuel import dependency as well as to tackle the menace of vehicular pollution in our cities, the government needs to galvanize the eco-system for E-vehicles in the country. The Union budget 2016-17 can be an ideal exercise in this direction and built upon the momentum over the previous budget."
As per the information received, to win the race towards achieving low emissions and reduced crude oil consumption, electric vehicles (EV) are the way to go. More emphasis should be given to EVs than hybrid vehicles. Sohinder Gill has highlighted some pointers which are required to be addressed in this year's budget.
- Two-wheelers used in commercial applications like home delivery of goods, foodstuff, and groceries, should be compulsorily shifted to electric bikes.
- Introduce fines and penalties on polluting cars in cities or critical part of cities, taking an example from London that levies a tax of 80 pounds on fuel cars coming into the city, and many parts of European cities that have been made out of bounds for polluting vehicles.
- Long term commitments should be announced which follow a tenure of 5 to 10 years defined period. There should be better coordination between the various ministries and departments to avoid unnecessary stagnation of the sector.
- Better infrastructure should be provided by installing public charging station in at least 100 cities to support electric vehicles.
- Public banks should be asked to offer loans to facilitate the procurement of electric vehicles.
- There should be provision for Special E-Vehicle Promotional Schemes for the government and public sector offices to offer incentives to employees who opt shift to electric vehicle.
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