Fixing FAME-II

Incentives under EV scheme need to be reworked

The government’s FAME-II (Faster Adoption and Manufacturing of Hybrid & Electric Vehicles in India) programme has received some criticism about its parameters. Most recently, the managing director of Bajaj Auto, Rajiv Bajaj, has accused it of “putting the cart before the horse” — of seeking to accelerate manufacturing in India without ensuring there is adequate demand for the electric and hybrid vehicles so produced. FAME-II, which was passed by the Union Cabinet in February, will cost Rs 10,000 crore over three years and intends to provide incentives to the manufacturers of electric and hybrid vehicles. Mr Bajaj believes instead that