FAME 3 Scheme Must Be Technology-Agnostic to Propel India’s EV Ecosystem: Sun Mobility Co-Founder
As India eagerly anticipates the finalization of the FAME 3 scheme, key industry leaders are advocating for a more inclusive and technology-agnostic approach to foster the growth of the electric vehicle (EV) ecosystem. Chetan Maini, Co-Founder and Chairman of Sun Mobility, has been particularly vocal about the need for the upcoming policy to address the diverse technological needs within the sector.
In a recent interview with CNBC-TV18, Maini emphasized the critical elements that FAME 3 must encompass to effectively accelerate the transition to electric mobility in India. He stressed that the policy should not favor any specific technology but instead support a range of solutions, including battery swapping, which he believes is essential for the sustainable growth of the EV industry.
The Need for a Technology-Agnostic Policy
Maini highlighted the importance of a technology-agnostic approach, arguing that policies and incentives under FAME 3 should be designed to support various transportation technologies rather than just traditional EV charging infrastructure. “The industry is looking forward to having battery swapping also get the concessions and the GST reduced, which would help the industry tremendously,” he stated.
He noted that the current ambiguity in policy regarding battery swapping versus traditional charging has led to unequal treatment of these technologies. By advocating for a uniform policy that offers equal benefits to both, Maini envisions a more cohesive environment that would encourage broader adoption of EVs across different sectors.
The Role of Infrastructure and Public-Private Partnerships
Another key area of focus for Maini is the large-scale rollout of infrastructure, which he believes is crucial for the widespread adoption of EVs in India. He pointed out that while the government has initially pushed for the development of EV products, there is now a pressing need to expand infrastructure, particularly through public-private partnerships.
Maini emphasized that including other transportation sectors, such as trucking—which accounts for nearly 50% of the country’s pollution—could significantly advance India’s decarbonization goals. “The first role of the government was pushing around products. Now there also needs to be a push on infrastructure,” he remarked, underscoring the need for comprehensive development that extends beyond just passenger vehicles.
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Sun Mobility’s Expansion and Technological Innovations
Sun Mobility, a pioneer in battery-swapping technology, is already taking steps to expand its infrastructure across India. The company recently secured a $78 million investment from Indian Oil Corporation (IOC) and is engaged in a joint venture with IOC, which has committed $220 million over the next three years. This partnership aims to double Sun Mobility’s monthly battery swaps from 1.7 million to over 3.5 million in the near future, reflecting the growing demand for alternative EV infrastructure.
In addition to scaling its operations, Sun Mobility is also at the forefront of technological innovation. The company announced plans to introduce the world’s first modular battery-swapping technology for electric vehicles in partnership with Bangalore-based bus manufacturer Veera Vahana. This technology is expected to cater to the diverse needs of the Indian EV market, including two and three-wheelers as well as heavier vehicles like trucks and buses.
Anticipation of FAME 3 Scheme Details
The Indian government is expected to finalize the FAME 3 scheme within the next 10 to 15 days. According to sources, the government is considering an outlay of Rs 11,500 crore, with plans to stagger or reduce incentives across different categories over the two-year period. The scheme is likely to include incentives for electric buses, three-wheelers, and two-wheelers, while also potentially introducing new categories such as electric trucks, tractors, mining equipment, and charging infrastructure.
Maini and other industry leaders are hopeful that the FAME 3 scheme will address the existing gaps in policy and provide the necessary support for diverse EV technologies, paving the way for a more robust and sustainable EV ecosystem in India. As the country continues its journey toward electrification, the decisions made under FAME 3 will play a crucial role in shaping the future of transportation and environmental sustainability.
