Centre weighs harmonizing standards for new FAME-III
NEW DELHI : The ministry of heavy industries (MHI) may combine the standards required for the FAME-II and production-linked incentive (PLI) scheme for advanced automotive technologies as it weighs the contours of the next phase of its plan to push manufacturing of hybrid and electric vehicles, a senior government official said on Tuesday. The move is seen as a way to streamline processes for auto and auto parts makers who currently have to obtain separate certifications from government-affiliated testing agencies in order to qualify for incentives under FAME-II and the PLI for auto, Kamran Rizvi, secretary, MHI said. The government schemes as they currently stand, including Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME), make for cumbersome form-filling for manufacturers.
FAME-II mandates manufacturers to localize a set of 18 electric vehicle components to qualify for incentives. The PLI auto scheme, on the other hand, requires OEMs and parts makers to show evidence of at least 50% domestic value addition (DVA). That’s in addition to fulfilling the investments they have committed to making.
People privy to recent discussions in the ministry told Mint that the government is considering how incentives for EVs, alternative fuel technologies, and for the development of infrastructure for new vehicle technologies can be merged in FAME-III. FAME-III is seen as a potential successor to the ongoing FAME-II scheme, which ends in March next year. The heavy industries ministry will also extend the timeline for the validity of the scheme to allow automakers one more year of sales to claim incentives.
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