Government planning digital certificates to highlight EV subsidies to customers
What's the story
The Indian government is considering a unique approach to emphasize its role in subsidizing electric vehicles (EVs). As part of the third phase of its primary incentive scheme for EVs, it plans to issue digital certificates to buyers. The certificates will highlight the central government's contribution to reducing the upfront cost of EVs and its contribution toward making green transition more affordable, sources familiar with the matter told Mint.
Scenario
Invoices to show government's exact contribution
"Many customers don't realize how much of the discount (on their EV purchase) comes directly from the government," one of the sources told Mint. "The discounted amount will be visible on the invoice as well, as is the current practice, and customers will know exactly how much support the government is offering," they added.
Certificate details
Digital certificates to feature subsidy amount
The digital certificates will be issued by the Ministry of Heavy Industries, responsible for the Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme. Each certificate will feature the Government of India's logo, subsidy amount, as well as a QR code. This code will provide information about the FAME scheme, and the buyer's role in reducing carbon emissions.
Voucher initiative
Dealers to issue digital vouchers acknowledging government's support
Dealers will provide buyers with a digital voucher, serving as a certificate that acknowledges the government's support in their EV purchase. To make this process more engaging, customers will be encouraged to take selfies with their vouchers at dedicated photo booths in showrooms. These selfies and vouchers will then be uploaded to the FAME portal by dealers, creating a digital record for original equipment manufacturers (OEMs) to verify sales and claim subsidies from the government.
Scheme transparency
FAME-III scheme to make government's role more visible
The upcoming FAME-III scheme is a key part of the government's strategy to promote electric mobility. It offers cash subsidies to buyers, reducing the vehicle price at purchase. Unlike previous phases that have driven EV market growth, this new phase aims to make the government's role more transparent to consumers. This approach is similar to other government initiatives like PM Kusum and PM Sugam, where digital certificates are used for beneficiary tracking and highlighting government involvement.
Implementation talks
Stakeholder discussions underway for efficient implementation
Discussions with stakeholders, including automakers and dealers, are underway to ensure the new system is practical and efficient. "A discussion took place just yesterday regarding the selfie and voucher process, and the proposal will soon be presented to the Prime Minister's Office (PMO)," a source said. The government expects to finalize the third phase of FAME scheme within next few months. An inter-ministerial group is currently reviewing feedback from earlier phases of this scheme.