India approves Rs 100 billion FAME II Scheme for Electric Mobility
Funds to be utilised for Subsidies and Infrastructure from 2019–2021
India’s Union cabinet chaired by the Prime Minister 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 1 which was launched on 1st April 2015, with total outlay of Rs. 895 crores.
The main objective of the scheme is to encourage Faster adoption of Electric and hybrid vehicle by way of offering upfront incentives 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.
The total fund requirement for this scheme is Rs. 10,000 crores over three years from 2019–20 to 2021–22.
The scheme proposes to support the 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.
The emphasis in this scheme is on electrification of the public transportation and it includes shared transport as well. The scheme proposes to support 1 million electric 2-wheelers, 500,000 electric 3-wheelers, 55,000 4-wheelers and 7000 Buses.
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.
Demand Incentives on operational expenditure model for electric buses will be delivered through State/city transport corporation (STUs).
To encourage advanced technologies, the 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.
