Govt Extends Validity of FAME-II Certificates by 1 Year; SMEV Praises Move

The DHI has extended the validity of FAME-II certificates for all Vehicle Models (e2W, e3W & e4W) approved under FAME-II by 1 year.

The Department of Heavy Industry (DHI) under the Ministry of Heavy Industry and Public Enterprises has notified of the extension for the validity of FAME-II certificates for all Vehicle Models (e2W, e3W & e4W) approved under phase-II of the FAME India Scheme by 1 year.

Background

FAME-II eligibility certificates issued by Testing Agencies and approval of models of electric vehicles (EVs) by NAB/DHI was valid up to March 31, 2021. All vehicle model(s) that are approved under this scheme were required to submit re-validation certificate in accordance with the operational guidelines issued in March 2019 for availing demand incentives under FAME-India Scheme Phase-II.

The DHI has stated that in an attempt to streamline the process and evenly spread it out – FAME- Il certificate will now be valid for one year from the date of its issuance for all the approved vehicle models including electric two-wheelers, electric three-wheelers and electric four-wheelers. 

In addition, the ministry also added that the OEMs/Testing Agencies have been informed that all approved models will have to submit Re-Validation Certificate within an additional timeline of one month from the last date of the validity of the certificate. This means, manufacturers will get an extra month after the expiration of their certificates to file for re-validation under the scheme.

However, if the vehicle model(s) are not re-validated within the stipulated time period, its registration with the FAME India Scheme Phase-ll online web portal is liable to be cancelled. Once model(s) is/are re-certified/re-validated, they will be approved by DHI/NAB. 

Further, Demand Incentive for these vehicle model(s) sold after one year of certification date shall be admissible only if re-validation is done within an additional time of one month, as per operational guidelines issued by the Department for delivery of demand incentive under FAME-Il Scheme.

We thank the government for accepting our request and extending the validity of FAME II certification for one year from the date of issuance. This measure would provide much relief to OEMs who were unable to sell their inventory till 31 March 21.

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— SMEV (@TheSMEV) April 13, 2021

Welcoming the move to extend the validity of the FAME-II certifications, the Society of Manufacturers of Electric Vehicles (SMEV) stated that “we thank the government for accepting our request and extending the validity of FAME-II certification for one year from the date of issuance.  This measure would provide much relief to OEMs who were unable to sell their inventory till March 31, 21.”

Sohinder Gill, DG of SMEV said that the organisation is “awaiting the government’s decision on the other important policy interventions to support e-mobility. Few initiatives that can catalyse a significant growth in electric vehicles are- starting a major EV awareness campaign across India, mandating delivery vehicles to convert to electric and extension of FAME 2 by another 3 years. An early decision and announcement of these measures would attract investments into the sector and help in the development of the local supply chain.”