How PLI and FAME schemes will help the EV ecosystem?
Are you noticing electric vehicles more than ever? Thanks to government schemes for boosting the EV ecosystem in India. The nation is keen to increase the accessibility and quality of electric cars. Schemes like Production-Linked Incentive (PLI) and Faster Adoption and Manufacturing of Electric Vehicles (FAME) play a crucial role in EV growth. These policies include different incentives, strategies, and guidelines.
How do they actually work? Let’s find out.
Production-Linked Incentive (PLI)
The PLI scheme promotes the usage of advanced technologies, including battery electric technology. The scheme under Union Cabinet provides an incentive of Rs 26,058 crore over five years to boost domestic manufacturing. Thus, the incentive allows a competitive price for electric vehicles. The scheme benefits both manufacturers and consumers of electric vehicle technology.
PLI also leads to decreased dependence on equipment and product imports. Moreover, there will be more significant employment due to domestic EV manufacturing.
The question comes- what does PIL hold specifically for the EV space? It essentially focuses on EVs and hydrogen fuel cell vehicles and their components. PLI consists of two schemes: Champion OEM Incentive Scheme and Champion Component Incentive Scheme. The component front consists of hydrogen fuel components, high voltage connectors, AC and DC charging inlet, outlet ports, and electric motor components, among the 22 specified products.
The PLI scheme offers twin benefits to the EV players: direct financial incentives for the brands and indirect investments. According to government statements, the PLI scheme will likely bring over Rs 42,500 crore in assets. Moreover, an increase in employment in the EV sector will create a funnel for talent for EV start-ups. The evolving EV technology holds a bright future for the masses.
As stated by Sohinder Gill, Director General of the Society of Manufacturers of Electric Vehicles, the PLI scheme will likely improve the EV manufacturing ecosystem. India is looking forward to leveraging PLI to its full potential. Such a scheme will promote the nation’s self-reliance on zero-emission vehicles.
Faster Adoption and Manufacturing of Electric Vehicles (FAME)
Another scheme called the FAME India Scheme is integral to the EV industry in India. The Government is currently working on its second phase of adoption. FAME-II provides numerous advantages to both electric vehicle manufacturers and consumers.
Some of the benefits include,
- Reducing the cost of electric vehicles
- Making electric vehicles more cost-effective than conventional vehicles
- Meeting the demands of electric vehicles
Besides these perks, the Original Equipment Manufacturers (OEMs) have the authority to claim subsidy amounts. The Department of Heavy Industries does it after leveraging end customers for reduced purchasing prices. FAME-II has a broader perspective as compared to other EV policies. One of the perspectives includes demand incentives, and the other is creating a comprehensive charging station network. Thus, FAME-II focuses on strengthening EV infrastructure along with manufacturing.
The scheme also focuses on reducing the purchasing cost of electric two-wheelers by 10% to 25%. The actual number is subject to the price of vehicles, battery capacity and other features. Moreover, the recent amendments in the FAME-II scheme focus on fulfilling the demands of electric three-wheelers and electric buses. It would get fulfilled through the Central Government’s Energy Efficiency Services Ltd (ESSL) appointment.
In today’s time, government initiatives are expanding more than ever. The demand incentive under the FAME-II scheme increased from Rs 10,000/KWh to Rs 15,000/kWh. Even the cap witnessed a rise from 20 per cent to 40 per cent for the overall cost of the vehicle. It will enable EV players to keep the cost of electric two-wheelers at par with ICE two-wheeler vehicles.
The need for ecologically sound and cost-effective transportation alternatives has increased currently. On one side, the prices of fuels like Petrol, Diesel and CNG are skyrocketing. And on the other hand, high maintenance costs and high emissions make conventional commuting undesirable.
Implementing PLI and FAME schemes will be at the core of India’s development policies. On the other hand, the impact is social, ecological and economical. Thus, last-mile delivery solutions must get geared up for a significant EV revolution.
One such initiative is by Zypp Electric to provide riders with sustainable and cost-friendly electric two-wheelers. In return, they deliver orders per their preferred time slots and earn money. Additional expenses like owning a vehicle, maintenance, fuel, etc., get eliminated in the process. The company holds a powerful vision to bring a technological revolution in the last mile delivery solutions. So, the search for “e Scooter for Delivery Near me” or similar services end here. Zypp Electric is here for the rider’s rescue and to provide effective last-mile services to the associated retailers and brands. Some of the renowned partners of Zypp include Amazon, Zepto, Blinkit, Delhivery, Zomato, and much more.
Let’s join the EV revolution together!