FAME India Phase II Scheme Approved by Cabinet - Implications, Impact and Industry Reactions
The scheme with total outlay of Rs 10000 Crores over the period of three years will be implemented with effect from 1st April 2019.
Tata Tiago EV. (Image: Rushlane)
The Union cabinet chaired by the Prime Minister Shri Narendra Modi has approved the proposal for implementation of scheme titled 'Faster Adoption and Manufacturing of Electric Vehicles in India Phase II (FAME India Phase II)' for promotion of Electric Mobility in the country. The scheme with total outlay of Rs 10000 Crores over the period of three years will be implemented with effect from 1st April 2019. This scheme is the expanded version of the present scheme titled 'FAME India I' which was launched on 1st April 2015, with total outlay of Rs 895 crores.
Financial Implications: Total fund requirement for this scheme is Rs. 10,000 crores over three years from 2019-20 to 2021-22.
Impact: The main objective of the scheme is to encourage Faster adoption of Electric and hybrid vehicle by way of offering upfront Incentive on purchase of Electric vehicles and also by way of establishing a necessary charging Infrastructure for electric vehicles. The scheme will help in addressing the issue of environmental pollution and fuel security.
Details: Emphasis is on electrification of the public transportation that includes shared transport.
- Demand Incentives on operational expenditure mode! for electric buses will be delivered through State/city transport corporation (STUs).
- In 3W and 4W segment incentives will be applicable mainly to vehicles used for public transport or registered for commercial purposes.
- In the e-2Ws segment, the focus will be on the private vehicles.
- Through the scheme, it is planned to support 10 Lakhs e-2W, 5 Lakhs e-3W, 55000 4Ws and 7000 Buses.
. To encourage advance technologies, the benefits of incentives, will be extended to only those vehicles which are fitted with advance battery like a Lithium Ion battery and other new technology batteries.
Infrastructure: 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.
- Establishment of Charging stations are also proposed on major highways connecting major city clusters.
- On such highways, charging stations will be established on both sides of the road at an interval of about 25 km each.
Industry Reaction - The Society of Indian Automobile Manufacturers (SIAM) has welcomed the announcement of the FAME II Scheme that was approved by the Cabinet Committee. This will provide a big fillip to our joint efforts to introduce higher levels of Electric Mobility in the country said Mr Rajan Wadhera, President, SIAM.
The industry is poised to make huge investments in manufacturing EVs in all categories of vehicles and developing an indigenous supply chain to ensure Make in India. According to Mr Wadhera, the three-year Scheme with significantly enhanced financial allocations as reported, will instill tremendous confidence in the auto as well as in the component industry while taking long-term investment decisions in EV development and manufacture, with minimum risk.
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