In a country largely dependent on public transportation, it is important to adopt eco-friendly modes of transportation. The government has set a target of running 100% electric vehicles in public transport by 2030. Achieving this appears to be a challenge as replacing conventionally fueled vehicles alone may not encourage people using other forms of transportation to adopt public transport.
The government has actively taken steps in this direction by launching the Green Urban Transport Scheme (GUTS) and Faster Adoption and Manufacturing of Hybrid & Electric Vehicles (FAME)to promote the adoption of electric mobility in the country. The Ministry of Urban Affairs launched GUTS in 2017 to address infrastructure and financing in e-mobility, and to reduce carbon emissions from vehicles, especially government-owned public transportation.
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The scheme proposes reforms like establishing a Unified Metropolitan Transport Authority and an Urban Transport Fund, and, adopting and implementing transit-oriented development, travel demand management measures, policy for urban street vendors etc. Similarly, FAME was introduced to enhance electric vehicle production and to facilitate the creation of electric transportation infrastructure.
The Ministry of Heavy Industries and Public Enterprises has notified the second phase of the FAME (FAME II) to boost clean mobility. Under the scheme, the government has decided set aside ₹100 billion (US$1.45 billion) as subsidies to buy 7,000 buses over the next three years. The scheme offers various incentives to manufacturers, such as exemption from paying road tax, registration fee and parking charges for various categories of electric and strong hybrid vehicles. FAME II lays emphasis on charging infrastructure.
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Akshay Malhotra is an associate partner and Esha Nair is an associate at HSA Advocates.
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