A parliamentary committee has proposed increasing subsidies for electric vehicles.

With about 22 million sales per year, India is predominantly a two-wheeler market. Under the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles in India (FAME)-II scheme, the government recently increased the subsidy/incentive from Rs 10,000 per Kwh [Kilowatt hour] to Rs 15,000 per Kwh, as well as the cap on incentive for electric two-wheelers from 20% to 40% of vehicle cost.

The committee is hoping that the rise in subsidies and the upper limit would aid in the formation of demand in the electric car category, according to the panel.

In its report titled 'Electric and Hybrid Mobility-Prospects and Challenges in the Automobile Industry', the Department Related Standing Committee on Industry stated that the scope of the FAME-II should be broadened to include funding/grants for electrified vehicle component development and R&D, development of components for charging infrastructure, and capital subsidy/incentive for manufacturing electric vehicle components.

In terms of charging stations, the panel advised that a sub-meter or separate meter arrangement be built for billing the charging point used only for EV charging by home users in order to make the power cost low and attract potential purchasers to purchase EVs. According to the panel.

To improve mobility services, it is important to have a live database of active charging stations established around the nation and the locations publicly available for customer's reference, allowing them to easily track the nearest charging station in times of need while on the road. As a result, the committee advises the government to establish such a facility to improve e-Mobility services, the panel stated.

To increase the number of charging stations, the government may consider installing smart meters on electric poles at designated locations, building small charging stations throughout cities/villages/highways, and issuing smart cards to EV owners, who can charge their batteries anywhere, according to the panel's report.

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