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Union Government launched FAME-India scheme to boost electric, hybrid vehicle sales

Apr 2, 2015 18:58 IST

Union Government on 1 April 2015 launched Faster Adoption and Manufacturing of Hybrid and Electric vehicles (FAME) – India Scheme.

The scheme was launched with an aim to boost sales of eco-friendly vehicles in the country. It is a part of the National Mission for Electric Mobility.

The scheme envisages providing 795 crore rupees support till 2020 for the manufacturing and sale of electric and hybrid vehicles.

Characteristic Features of FAME – India Scheme

  • It envisages providing demand incentives to electric and hybrid vehicles from two wheelers to buses in range of 1800 rupees to 66 lakh rupees
  • Focus areas of the scheme will be technology development; demand creation; pilot projects; and charging infrastructure
  • Depending on technology, battery operated scooters and motorcycles will be eligible demand incentives ranging between 1800 rupees to 29000 rupees
  • In three-wheeler the incentives will range from 3300 rupees and 61000 rupees
  • In four-wheeler segment incentive ranges from 13000 rupees and 1.38 lakh rupees
  • In case of Light Commercial Vehicles (LCV) incentive ranges from 17000 rupees to 1.87 lakh rupees
  • In case of buses the incentive ranges from 34 lakh rupees to 66 lakh rupees
  • The Department of Heavy Industries will be nodal department for the scheme.

Implementation of the Scheme

The scheme will be implemented in phases with fund allocations of 260 crore rupees and 535 crore rupees for the first two years respectively. The funds will be spent on technology platform (including testing infrastructure) demand incentives, charging infrastructure, pilot projects and operations.

In the first phase, the scheme will be implemented over a two year period between 2015-16 and 2016-17. The government will review the implementation of the scheme in first phase after 31 March 2017.

The future allocation will depend on the outcome and experience gained during the period.

National Electric Mobility Mission Plan

Union Government launched the National Electric Mobility Mission Plan (NEMMP) 2020 in 2013. NEMMP aims to achieve national fuel security by promoting hybrid and electric vehicles in the country. There is an ambitious target to achieve 6-7 million sales of hybrid and electric vehicles year on year from 2020 onwards.

Government aims to provide fiscal and monetary incentives to kick start this nascent technology. With the support from the Government, the cumulative sale is expected to reach 15-16 Million by 2020.

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