India to have over 3,000 electric buses in next 2 years under FAME II scheme

Since the onset of 2022, the Indian government has been initiating electric buses to reduce carbon emissions. In May, the Delhi government flagged off 150 buses in the national capital, and now over 3,000 more electric buses will ply in different cities of the country in the next two years under the FAME-II scheme, Heavy Industries Minister Mahendra Nath Pandey stated recently. He added that already 3,049 e-buses are operating in the country. The minister flagged off 175 e-buses for Gujarat (75) and Karnataka (100) on Friday here under the scheme. He was here to participate in a conference on Industry 4.0. 

"Over 3,000 more buses will come in two years," Pandey said on the sidelines of the conference. In 2019, the Faster Adoption and Manufacturing of Electric Vehicles in India Phase II (FAME India Phase II) scheme for the promotion of electric mobility in the country was approved. Through the scheme, it is planned to support 10 lakh e-two wheelers, 5 lakh e-three wheelers, 55,000 four-wheelers, and 7,000 e-buses.

He also said the ministry has sent notices to two companies seeking information regarding the components used in their electric vehicles and whether these are locally produced or not as the firms have filed subsidy claims under the Rs 10,000 crore FAME-II scheme.

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The government would take action against the two electric vehicle manufacturers in case they are found to have not complied with the requirement of localisation under the scheme, the minister said. He, however, did not disclose the names of the companies.

However, a government official said notices have been sent to Hero Electric and Okinawa. "We have sought their reply on the notices. We have asked for some details," Pandey said, adding the government provides subsidies based on certain conditions that the EV makers have to meet under the scheme and one of the conditions is local production of components.

"If they will be found violative of those provisions, then we will take steps as per that policy (scheme)...If somebody will not follow the government norms, then we will take action against them," he added. The official said the two firms' subsidies have been suspended till the time their replies are received.

(With inputs from PTI)