About:

  • FAME (Faster Adoption and Manufacturing of Hybrid and Electric)National Electric Mobility Mission Plan.
  • The FAME(Faster Adoption and Manufacture of (Hybrid and) Electric Vehicles) was launched by the Ministry of Heavy Industries and Public Enterprises in 2015 to incentivize the production and promotion of eco-friendly vehicles including electric vehicles and hybrid vehicles
  • Aimed at incentivising all Electric vehicle segments.
  • Total Outlay Rs.10895 Crore.

Two phases of the scheme:

  • Phase I: started in 2015 and was completed on 31st March, 2019.
  • Phase II: started from April, 2019, will be completed by 31st March, 2022.

Objectives of FAME Scheme:

  • Encourage faster adoption of electric and hybrid vehiclesby way of offering upfront Incentive on purchase of Electric vehicles.
  • Establish a necessary charging Infrastructure for electric vehicles.
  • To address the issue of environmental pollution and fuel security.

Features of 1st Phase:

  • Demand Creation
  • Technology platform
  • Pilot Project
  • Charging Infrastructure.

Outcome of 1st Phase:

  • About 2,80,987 hybrid and electric vehicles were supported by way of demand incentive, amounting to about Rs 359 crore.
  • DHI sanctioned 425 electric and hybrid buses to various cities in the country with total cost of about Rs. 280 Crores.
  • The Department of Heavy Industry had also sanctioned 520 Charging Stations for Rs. 43 Crore (approx.) in cities like Bangalore, Chandigarh, Jaipur and NCR of Delhi under Phase-I of FAME-India Scheme.

Features of Phase II:

  • Electrification of the public transportation.
  • Only buses priced up to2 crore, strong and plug-in hybrids under ₹15 lakh, three-wheelers under class ₹5 lakh and two-wheelers under ₹1.5 lakh will be eligible for incentives.
  • This phase aims to support, through subsidies, approximately 7000 e-Buses, 5 lakh e-3 Wheelers, 55000 e-4 Wheeler Passenger Cars and 10 lakh e-2 Wheelers.
  • In 3-Wheel (W) and 4-Wheel (W) segment incentives will be applicable mainly to vehicles used for public transport or registered for commercial purposes.
  • In the 2-Wheel (W) segment, the focus will be on the private vehicles.
  • Benefits of incentives will be extended to only those vehicles which are fitted with advanced batteries like a Lithium Ion battery and other new technology batteries.
  • It is proposed to extend uniform demand incentive @INR 10,000/- per Kwh for all –vehicles(including PHEV and strong Hybrid) except e-Buses.
  • For e- Buses, uniform maximum demand incentive@ INR20,000/- per Kwh is proposed  which is further subject to competitive bidding amongst the OEMs.
  • The scheme proposes for establishment of charging infrastructure, whereby about 2700 charging stations will be established in metros, other million plus cities, smart cities and cities of Hilly states across the country so that there will be availability of at least one charging station in a grid of 3 km x 3 km.

Challenges faced in wider adoption of EVs

  • Lack of awareness among people
  • Range anxiety
  • High capital cost of EVs as compared to ICE vehicle
  • Recycling of battery

Outlook:

‘FAME INDIA’ is a part of the National Electric Mobility Mission Plan. Main thrust of ‘FAME’ is to encourage electric vehicles by providing subsidies. On 26th September, 2020, the government has sanctioned 670 electric buses and 241 charging stations to boost the electric mobility in the country under Phase-II of FAME India Scheme and Rs 212.31 crore has been released for the procurement of electric buses as of January 31 this year under the second phase of FAME-India Scheme. Sanctioning committee has sanctioned 5,565 electric buses to 65 cities/ state transport corporation for intra-city operation; 600 electric buses for intercity operation and 100 electric buses for last mile connectivity to Delhi Metro Rail Corporation (DMRC).In 2020 government sanction to set-up  2636 EV charging stations in various cities and metros out of which contract for 282 assigned to NTPC. TATA motors, M&M, MG, Ather (backed by Hero motocorp) JBM Auto among the key contributor in Electric vehicle segment. Government has taken many initiatives to promote Ev in country like GST reduced to 5% from 12% on Ev and Income tax deduction of Rs.1.5 Lakh on Interest paid on loans to buy Ev. Now, with the committed Initiative by the Government, saving of 42,767 litres of fuel and 97,330 kg of Reduction in Co2 per day has achieved.

(Source: PIB, DHI, Economic Times,DrishtiIAS)

                        

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