Press Release

Government continuing FAME subsidy, to roll out payment security mechanism for e-mobility – Mr. Tarun Kapoor, Advisor PMO

The government is continuing with the FAME subsidy to bridge the price difference in EV. We have to look at ways to bring down the price because govt. subsidy cannot be forever.

New Delhi, 3 August 2023: “The government is continuing with the FAME subsidy to bridge the price difference in EV. We have to look at ways to bring down the price because govt. subsidy cannot be forever. Innovation in batteries picked up in the last few years and price will certainly come down. We have to ensure a major shift towards public transport such as Metro and electric buses for which the states will have to be on-board as most of the decision making is at the state level. The government is serious about setting up a payment security mechanism to ease availability of financing and will be rolled out soon. It is just a matter of time for EV to take off in a big way.”, said Mr. Tarun Kapoor Advisor to Hon’ble Prime Minister, PMO while speaking at the National Conference on Electric Mobility organised by ASSOCHAM. 

“The government is clear on the importance of electric vehicles, and we have to take this as our collective agenda for the future of our country in terms of energy transition policies and plans. The basic eco-system is coming in place, and we would have to accelerate to see the kind of numbers we would like to see. There already is a strong auto sector in the country and manufacturing in EV can come in really fast. It is just a question of a little shift by the large manufacturers and motor vehicle companies.” He added. 

Delivering the Keynote address Mr. Vishal Kapoor, CEO, Energy Efficiency Services Limited (EESL) “Climate change is a reality today despite the initial scepticism. The most transformative initiative as a part of this acceptance is the ongoing shift from fossil fuel-based ICE to electricity as the prime mover. Throughout history society and communities have experienced transformation through two fundamental pillars, in power of narratives and in power of the market. We are at the cusp of transformation with the war on the power of narrative being won with the idea that electric mobility is the way forward. A large part of the eco-system is already present, what we need is a disruption for electric mobility. This disruption will be possible through better collaboration between demand and supply side of the electric mobility market. We must also eliminate whatever information asymmetry that still exists among various stakeholders and increase the visibility of technology and other risks.” 

Speaking at the conference, Mr. Nishant Arya, Chairman, National Council on Green Mobility, ASSOCHAM and Vice Chairman, JBM Group highlighted that the global automotive industry is shifting significantly towards electric vehicles (EVs) to combat climate change and reduce carbon emissions. A push to startups and MSME is a must in this sector to sustain EV journey in India. 

Mr. Rahul Bharti, Executive Director, Maruti Suzuki India Pvt. Ltd. Said that EV sales in India witnessed a significant growth with a strong collaborative push for net-zero and national subsidies. The government's commitment to promoting sustainable transportation played a pivotal role in inspiring great interest in EVs. 

Mr. Vikram Handa, Co-Chairman, National Council on Green Mobility, ASSOCHAM and Managing Director, Epsilon Carbon Pvt. Ltd. said, “India has a sizable untapped market for electric cars (EVs), which can be realized with the help of an ambitious approach by automotive players, innovation to reduce cost and a focus on Commercial vehicles.” 

While talking with the audience, Mr. R. S. Kalsi, Chairman, National Council on Auto & Auto Ancillaries, ASSOCHAM & Member Executive Board, Maruti Suzuki India Ltd., said that we have a lesson to learn from China in order to enhance our production and manufacturing levels. When we reach that level of volume and economy, we would achieve low cost and ease of doing business to have a similar story. 

The conference brought together national and international stakeholders of various segments of Electric Vehicle Industry to analyse, understand and arrive at suitable suggestions for the Government towards making the Indian EV industry more vibrant. An ASSOCHAM - NRI Study on Electric Mobility containing was also released at the event.