FAME-II subsidy should also consider range & speed of vehicle: Naveen Munjal

To prevent a hike in ownership cost of electric two-wheelers under FAME II (Faster Adoption and Manufacturing of Electric Vehicle) scheme government should not only focus on the battery power but also on speed and range of the vehicles, urged Naveen Munjal, MD, Hero Electric Vehicles.

Under the recently -announced policy, the government approved incentive of Rs 10,000 per KWH for the purchase of e-vehicles directly linked to battery size. This clearly means the buyer of vehicles with higher battery power will be eligible for lofty incentives.

Underlining its impact on cost of ownership he said "Majority of the electric two-wheelers are sold in the belly of the market segment and do not require very large batteries and power and operate at city speeds of 30-35 kmph, and by keeping the subsidy based only on battery power may result in increase in cost of the electric two-wheelers in this segment."

He, therefore, urged the government to also consider the range and speed of the vehicles a part of the incentive, apart from the battery power.

Furthermore, the Delhi-based company also welcomed the government decision and said that the approval of the second phase of FAME policy will spur investment in electric two and three-wheelers space. "This new policy will encourage associated industries to invest into the EV Sector thereby creating a healthy and widespread ecosystem," he added.

Under Rs 10,000 crore outlay of FAME-II scheme, which will come into effect on 1st April 2019, the government has planned to support 10 lakh electric two-wheelers, five lakh three-wheelers, 55,000 four-wheelers, and 7,000 buses. The policy is intended to promote electric and hybrid vehicles to address the issue of environmental pollution and fuel security.

Source- ET Auto