The Union cabinet has agreed to extend the Faster Adoption and Manufacturing of Electric Vehicles scheme in India– as an incentive for production and promotion of eco-friendly, electric and hybrid vehicles and technologies like Mild Hybrid, Strong Hybrid, Plug-in Hybrid & Battery Electric Vehicles, in a phased manner up to 31st March, 2019 or till Notification of FAME India II.
FAME India Phase II scheme will be implemented with effect from 1st April 2019. It will be implemented over a period of three years and has a total outlay of Rs 10000 Crore. It is an expanded version of ‘FAME India I’ — initially launched on 1st April 2015, with a total outlay of Rs. 895 crores.
FAME India is part of the National Electric Mobility Mission Plan (NEMMP). To extend its support and reap its benefits, the government of India aims to invest around Rs 14000 crore to promote the benefits of using the electric vehicles by providing subsidies and providing the required Infrastructure for charging of electric vehicles.
FAME India is nothing less than a blessing in disguise for – two wheelers, three wheelers, electric or hybrid cars and buses which will be eligible to claim subsidy under this scheme for streamline problems relating to environmental pollution and fuel security.
The twin focus areas of this scheme are — electrification of public transportation and shared transport. However, most of the incentives under this scheme will apply to commercial vehicles used for public transport or registered for that purposes. The scheme will benefit around 10 Lakhs electric two-wheelers, 5 Lakhs e- three-wheelers, 55000 4 wheelers and 7000 Buses.
The benefits of incentives are particularly useful for only those vehicles fitted with advanced batteries like Lithium Ion or any such batteries.
Another major objective of this scheme is to establish about 2700 charging stations in metros, cities, and Hilly state across the country. If all goes well soon, there will be at least one charging station in a grid of 3 km x 3 km. Such charging stations are pockmarked along major highways connecting major cities. Initially, there is a provision for one charging stations/ highway at an interval of about 25 km each on both sides of the road.
There is a provision for close to Rs 1700–Rs 39,000 as an incentive for the purchase of two-wheelers, Rs 3300- Rs 61,000 for three-wheelers. People who go for four-wheelers may get investive ranging from Rs 11,500 to Rs 1.43 lakh. Similarly, electric buses may be eligible for about Rs 55 lakh less under the scheme.
The National Electric Mobility Mission Plan 2020 (NEMMP) launched in 2013 to achieve sales of 6-7 million electric vehicles, required for saving 2.2 to 2.5 million tonnes of fossil fuel to substantially lower vehicular emissions and decrease carbon dioxide emissions up to 1.5% by 2020.
The Ministry of Power launched the ‘National Electric Mobility Programme’ in early 2018, to incorporate revolutionary changes in the charging infrastructure and set up a policy framework to put together a fleet of around 30% electric vehicles by 2030.
To make this possible, the Department of Heavy Industry is trying to create favourable market conditions, promote holistic growth, and speed up the use of electric vehicles (EVs) for the purpose of public transportation.
Several incentives in the scheme try to ensure that more and more people take its advantage. To create demand, the purchaser of electric and hybrid vehicles is given an upfront reduction in purchase price at the time of purchase. So far about 119 models of 2,61,507 hybrid-electric vehicles developed by 27 OEMs under the FAME India scheme.
The idea behind all this is to support as many fully electric buses for electrification of public transport. The Department of Heavy Industries has so far sanctioned 455 electric buses as a pilot project in 9 cities 31st October 2017. This has helped to create a craving for 3144 e-buses in 44 cities.
Replying to a parliament question in Lok Sabha, the Minister of State of Heavy Industries and Public Enterprises, Babul Supriyo, categorically stated that there is no proposal for manufacturing E-Buses.
As of now, 100 % FDI is permitted in the automobile sector –a deregulated sector where both private and public sector is free to invest – even manufacture Electric Vehicles and E-Buses.
The fund allocation made under this Scheme is given hereunder:
|Financial Year||Fund Allocated|
|1||2015-16||Rs. 75.00 Crore|
|3||2017-18||Rs. 165.00 Crore|
Rs. 579.00 crore