We will bring recovery lawsuits against electric two-wheeler companies that have failed to reimburse the government for FAME subsidies: JS, MoHI, Dr. Hanif Qureshi

 We will bring recovery lawsuits against electric two-wheeler companies that have failed to reimburse the government for FAME subsidies: JS, MoHI, Dr. Hanif Qureshi

A leading proponent of clean mobility, he notes that FAME (Faster Adoption as well as Manufacturing of (Hybrid &) Electric Vehicles in India) policies have been created framed for all types of electric vehicle making firms, while Product Linked Incentive (PLI) strategies are intended to create global automobile companies. Additionally, he firmly believes that free trade agreements (FTAs) with other nations are essential in the long run, even if local players must be safeguarded.

In 2022, Dr. Hanif Qureshi, a former member of the Indian Police Service (IPS), was appointed as the Ministry of Heavy Industries' (MoHI) Joint Secretary of the Treasury (JS).  Even though he supports clean transportation, he has made it clear that Electric Two-Wheeler (E2W) companies who have accepted FAME subsidies from the government in spite of breaking localization regulations would face harsh consequences. The altered excerpts are as follows:

The government has demanded that several E2W businesses who did not follow the FAME2 policy's localization guidelines return the subsidies they had received. Have all of the firms given you the full amount?

The businesses that have followed the guidelines are exempt from having to repay the government-awarded incentives. However, we'll take further measures against individuals who haven't paid back or cooperated. We'll pursue further legal action against these corporations and file recovery cases against them. I'll have to look for the firm names in the records since I can't recall them at the moment.

Research studies state that the Indian automobile market is valued at $150 billion. In the next seven to eight years, how big will it become and will its value place it in the top three?

The Indian automobile industry has grown robustly in several categories and has developed in a very powerful manner. In the next years, it's anticipated that the business will expand even more quickly, with electric vehicles (EVs) predicted to increase at a 49 percent CAGR through 2030. Other fuels, such as hydrogen fuel and flex-fuel automobiles, are also expected to become more popular. As a result, our market is expanding very quickly and might soon overtake others to become the third biggest in the world in terms of volume.

There is a lot of talk about the potential phase-out of the FAME2 policy, which is in effect until March 2024. Does policy support have an end in sight?

The government's EV policy are based on supply and demand. PLI programs for batteries and ACC are available on the supply side, whereas FAME is available on the demand side. In essence, both are used in EVs. The only cars that will be produced and given incentives are electric, even at PLI Auto. As a result, there is now an established policy on EVs that will last until 2029. There until March 2024 is FAME 2. About FAME 3, we cannot comment. However, PLI programs will stay in place to help EVs.

Since this business still depends on subsidies, what more might have been done, in your opinion, to provide a consistent push towards EVs?

The sector has to innovate to compete on a global scale. The major businesses in the market must also possess technological skill and provide clients with superior items at lower costs. In the end, it is the only way for the (EV) sector to expand in any nation. We believe that India's sector is well-positioned to do this, given its abundance of technical labor and the country's increasingly expansive legislative framework. A policy such as FAME is necessary, but so are the industry's competitiveness, R&D, and capacity to provide higher-quality goods at reasonable costs.

The air in many major cities, including as Delhi and Mumbai, is toxic. In what ways might automobiles become more environmentally conscious?

The Ministry of Road Transport and Highways (MORTH) notifies parties about the emission regulations, which are outlined in vehicle standards. Thus, all automobiles must adhere to those standards. In my opinion, OEMs must make sure that these standards are followed and that a suitable monitoring system is put in place for the cars that have already been sold. Monetary systems need to be enhanced and reinforced while they are in place. That can only result in a decrease in automobile C02 emissions.

Many EV startups and SMEs believe that Production Linked Incentive (PLI) programs are designed specifically for large corporations. What thoughts do you have on the matter?

The issue is that PLI plans are exclusive to major players and are not suitable for everyone. PLI plans have a threshold investment because of this. For instance, in order to manufacture cars at PLI Auto, your worldwide turnover must reach Rs 10,000 crore. A startup's gross revenue cannot exceed Rs 10,000. Therefore, this smaller class is intended to be excluded. Customized to produce world champions. You have to be in that (turnover) area if you want to be a worldwide champion. However, FAME is only available to smaller participants, and there is no minimum investment amount. You can still have a business, no matter how tiny—it may be worth Rs 5 crore, Rs 10 crore, or anything else.

What more might be done to support the electric vehicle industry?

The government is able to provide a variety of incentives. There are two types of incentives: tax-deductible and non-taxable. Therefore, in terms of tax incentives, you may have higher import charges and lower taxes for home production to protect your local business from the world's finest minds. On the other hand, if you overprotect your sector, they won't adapt to the competition and will remain ineffective. They are only compelled to develop and provide high-quality products at lower costs when they are up against competition. Thus, we also need to expose them to global competition. An iron curtain cannot be erected over the whole nation. We live in a free trade age. Therefore, we cannot declare that India would not engage in free trade. We just can't open our borders and defend our industries at the same time. Every nation defends its own industries. It's necessary to find a delicate balance, and I believe the administration is doing so.

The government was advised to develop an all-encompassing policy on EVs by an EV-focused legislative body. Could you explain it a little bit?

I believe that the government already has favorable duty structures in addition to supply-side and demand-side programs. Thus, in my opinion, they are sound policies. We ought to go on with it.

You said that the industry has to give new technology skills top priority. Do you have a program in progress that is specifically for EVs?

The Ministry's Automotive Skill Development Council (ASDC) is trying to reskill and provide workers with skills, particularly for electric cars and modern technology.

What does mobility mean for CVs in the future? Would you put your money on biofuel or LNGs, or do you believe ICE will stay in that market?

India does not rely only on a single technology. Every technology will cohabit. There will be ICE, LNG, electricity, and maybe hydrogen in the future. There may also be a hybrid vehicle and solid-state batteries. Batteries made of aluminum air or sodium ion are also available. So, there won't be a 100 and zero situation—whichever technology is better, cheaper, and has less emissions will find a position in the future.

Recently, the Delhi government updated its EV policy. What opinions do you have about that?  

The majority of the states that were urged to create EV policies have done so. The kind of policies that the state is implementing varies. Every state creates rules based on its own demands and geographic location. However, a key factor that will propel e-mobility across the nation is the national policy on electric cars. State and federal EV policies need to cooperate so that business may gain from them.

For almost three years, you have been in charge of the automobile sector. What major insights or breakthroughs did you make during your tenure? What more tasks do you plan to complete?

The Indian car sector is showing some very intriguing and positive trends. First off, we rank third globally in terms of car startups, behind only the United States and China. We are undoubtedly moving in the right path when so many young people desire to start their own businesses and create new goods. We started out as the world's fifth-largest, moved up to the fourth rank, and are now ranked third. We are the world's biggest manufacturers of two- and three-wheelers. This year, we are also collecting up in automobiles and buses. We now produce more electric buses than some of the world's affluent nations. Therefore, I believe that the vehicle sector, which now contributes 7.1% of GDP, will continue to develop at a very strong rate. In the next years, the automobile sector is predicted to account for more than 10% of the GDP. A significant number of people will be employed by it, and that number is probably going to increase. The history of vehicles is the history of contemporary India.