With chronic traffic congestion and skyrocketing air pollution, leading states in India are looking to electric vehicles as a key solution. States, such as Telangana, are developing EV policies to work in parallel with the newly launched national EV and mobility policy, FAME II.
The FAME II program allocates ₹10,000 crore ($1 billion) for capital subsidies to 2 and 3 wheeler EVs, vehicle fleets, and for EV charging infrastructure. This is just the start of the EV opportunity in India. Considering that India has 28 cars for every 1,000 people, as compared to the United States or Europe that have over 850 cars for 1,000 people, the opportunities to lock in energy savings, combat pollution and fight climate change are tremendous.
Many states are now in the process of updating their draft state EV policies to include the provisions and incentives under FAME II. The Department of Heavy Industries (DHI) has invited expressions of interest (EoI) from state transport departments for the deployment of 5,000 electric buses. Gujarat, Uttar Pradesh, Rajasthan and Kerala are a few of the states that have already submitted proposals to the government to purchase electric buses under the FAME-II program.
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06 September 2019