FAME II Certification Validity Extended: Will It Benefit EV Market In India?

The Ministry of Heavy Industry and Public Enterprise (MHIPE) has announced new validity norms for the FAME-II certificates. According to the new rule, the certificate will be valid for a year from the date it is issued.

The earlier rule stated that all certificates issued will be valid only for that current (FY) Financial Year. This meant that all certificates were valid till March 31, 2021. However, the rule has been changed to make it easier for EV makers in the country.

According to the notification sent by the MHIPE, all OEMs and testing agencies will have to submit revalidation certificates for all models of EVs. This process has to be completed within one month of the expiry of their validity. If not revalidated within a month from expiration, the FAME-II certificate is liable for cancellation.

The process remains the same for all form of EVs: 2W, 3W, and 4W. After the revalidation of the certificate, the models will be examined and approved by the (DHI) Department of Heavy Industry. Only then they are eligible for incentives offered under the scheme.

The (FAME II) Faster Adoption and Manufacturing of (Hybrid) and Electric Vehicles scheme succeeded the FAME India I programme, which was announced on April 1, 2015. The FAME II scheme is in place to fast track the adoption of EVs and hybrid in the country. The incentives to be provided are based on the type and make of any given vehicle.

As per the FAME-II scheme, the government of India allotted Rs 8,800 crore to support electric vehicle buyers. Additionally, Rs 1,200 crore was allocated to set up charging infrastructure in the country. It aimed to support one million two-wheelers, 500,000 three-wheelers, 55,000 cars and 7090 e-buses.

Commenting on the move, Sohinder Gill, director general, Society of Manufacturers of Electric Vehicles (SMEV) said: "We thank the government for accepting our request and extending the validity of FAME II certification for one year from the date of issuance. This measure would provide much relief to OEMs who were unable to sell their inventory till March 31, 2021. We are awaiting the government's decision on the other important policy interventions to support e-mobility."

"Few initiatives that can catalyse a significant growth in electric vehicles are - starting a major EV awareness campaign across India, mandating delivery vehicles to convert to electric and extension of FAME 2 by another 3 years. An early decision and announcement of these measures would attract investments into the sector and help in the development of the local supply chain."

He further added, "We appreciate and thank DHI to accept this recommendation of the industry. Such progressive measures would help bolster the industry's confidence to introduce more and more electric models with time. We believe that the scheme is largely on a right track and would result in desirable outcomes in the coming few years."

Thoughts About The FAME II Certification Validity Extension

The new validity rule for the FAME II certification will help EV makers in the country. This will also help EV buyers as they would continue to enjoy the benefits from the FAME II scheme in the country.

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Article Published On: Wednesday, April 14, 2021, 19:41 [IST]
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