NITI Aayog, the government’s apex policy think tank, has been tasked with rolling out an ambitious electric vehicle (EV) plan, pushing the department of heavy industries (DHI) into a tertiary role for a policy that is aimed at projecting India as a global torchbearer of green vehicles.
The DHI under the ministry of heavy industries and public enterprises is the nodal authority for the automotive sector and was also in charge of drafting and implementing the Faster Adoption and Manufacturing of Electric and Hybrid Vehicles (FAME) scheme. Companies producing such eco-friendly vehicles were offered subsidies under the FAME scheme.
The prime minister’s office (PMO) was however dissatisfied with a DHI plan that sought incentives for electric vehicles before the recently-held MOVE Summit, said three people familiar with the matter.
DHI had proposed ₹5,500 crore, which was approved by the finance ministry for the second phase of the FAME scheme but it was shelved by the PMO. Read More