FAME-II could reduce transport energy needs by 64%, emissions by 37% by 2030: CII

The government’s FAME-II plan for electric mobility stands to reduce 64% of the anticipated road-based energy demand by 2030 and 37% of carbon emissions by then, according to CII.

The government had earlier this year notified the second phase of its scheme for the Faster Adoption and Manufacture of (hybrid and) Electric Vehicles in India (FAME India) which sought to boost the adoption of electric and hybrid vehicles in the country. The tentative aim is to have 30% electric vehicles by 2030.

“India can save 64% of anticipated road-based mobility-related energy demand and 37% of carbon emissions in 2030 by pursuing a shared, electric, and connected mobility future, based on the findings of the study by Government of India,” CII said in a statement.

“This would result in reduction of 156 million tonnes of oil equivalent (mtoe) in diesel and petrol consumption for that year and net saving of approximately $60 billion in 2030 at present oil prices,” the industry body added. “This is also in line with the India’s vision of reducing oil imports by 10% by 2022.”

The FAME Scheme seeks to encourage the faster adoption of electric and hybrid vehicles by offering upfront incentives on the purchase of electric vehicles and by establishing the infrastructure required for the charging of these vehicles.

“Transport continues to be the highest oil consuming sector and the use of diesel and petrol grew at 5.9% and 9.9% respectively in the last 10 years,” CII said. “As per government’s estimates, the country’s import dependency on oil has increased from 78.3 per cent of total consumption in 2014-15 to settling at a new high of 83.7% in the 10-month period of FY19.”

The government has reportedly allocated ₹10,000 crore for the second phase of the programme, much higher than the ₹895 crore set aside for the first phase.

“However, with electric vehicle penetration in India currently at just 1%, FAME alone is not enough to reach the 2030 target,” CII added.

The industry body suggested that the domestic manufacturing of vehicles, components and batteries needed to be boosted, along with skill development across the value chain, and the strategic sourcing of key raw material.

“For transport to go truly green, it must also be accompanied by a rising share of renewables along with environmentally sustainable batteries,” CII said.


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