What is FAME II Scheme of India?
Department of Heavy Industry has implemented FAME-India Scheme-Phase-I on 1st April, 2015 to promote manufacturing of electric and hybrid vehicle technology and to ensure sustainable growth. No doubt it will promote eco-friendly vehicles in the country. This scheme was initially up to 31st April, 2017, but it has been extended up to 31st March, 2019. Let us tell you that the phase II of the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME II) has approved by the Central Government for promotion of Electric Mobility in the country.
About FAME II Scheme
This scheme will be implemented for the period of three years with effect from 1st April 2019. The total outlay of the scheme is Rs 10,000 Crores. As discussed above this scheme is the expanded version of the FAME 1 India which was launched on 1st April, 2015 with an outlay of Rs. 895 Crores.
FAME II Scheme: Significance
The main aim of the scheme is to encourage Faster adoption of Electric and hybrid vehicle by way of offering upfront incentive on purchase of Electric vehicles. Also, to establish a necessary charging infrastructure for electric vehicles. Not only this, the scheme will also help in addressing the issue of environmental pollution and security of fuel.
For charging infrastructure, the centre will invest to set up charging stations for public sector units and private players. For every electric bus one slow-charging unit has been proposed and for 10 electric buses one fast-charging station. This scheme will also encourage interlinking of renewable energy sources with charging infrastructure.
FAME II Scheme: Features
- The emphasis of this scheme is on electrification of the public transportation which includes shared transport.
- For electric buses, demand incentives on operational expenditure will be delivered through State/city transport corporation (STUs).
- 3W and 4W segment incentives will be applicable mainly to vehicles used for public transport or those who are registered for commercial purposes.
- In e-2Ws segment, the focus will be on the private vehicles.
Let us tell you that through this scheme, it is planned to support 10 Lakhs e-2W, 5 Lakhs e-3W, 55000 4Ws and 7000 Buses.
- The incentives will be offered by the Government for electric buses, three-wheelers and four-wheelers to be used for commercial purposes.
- In the scheme Plug-in hybrid vehicles with sizeable lithium-ion battery and electric motor will also be included.
So, now we understood that FAME II scheme aims to promote the use of electric vehicles in India. It will offer incentives to manufacturers, who invest in developing electric vehicles and its components, including lithium-ion batteries and electric motors.