670 new electric buses and 241 charging stations sanctioned under the FAME Scheme.

The Government of India recently sanctioned 670 Electric buses and 241 charging stations under phase II of Faster Adoption and Manufacturing of Electric Vehicles (FAME) Scheme. The scheme was launched to enhance the electric mobility in the country.

Faster Adoption and Manufacturing of Electric Vehicles (FAME) Scheme

  • The scheme aims for electrification of public transportation.
  • It provides incentives for three wheelers and four wheelers, especially those used for public transport.
  • The Scheme was launched to achieve the goals of National Electric Mobility Mission Plan, 2020
  • Benefits of the scheme are extended to those vehicles that are fitted with advanced batteries such as Lithium Ion batteries.
  • The scheme seeks to establish 2,700 charging stations in metro cities, smart cities and in cities having population more than 1 million.

FAME II

The second phase of the scheme was launched in 2019. The scheme has to be implemented between 2-19 to 2022. A total of 10,000 crores were allocated for the second phase. Out of this, Rs 1,000 crores have been allocated for setting up the charging stations. Charging stations will be set up on major highways connecting the city clusters under the scheme. Under the second phase, the Government of India (GOI) has planned to incentivize 5 lakh three wheelers, 35,000 four wheelers and 7,000 electric buses.

Objective

The scheme has been launched to counter the environmental pollution and for a better fuel security. It also seeks to increase the demand of electric vehicles, enhancing the vehicle charging station infrastructure and provide a platform for technological innovations.

Concerns

There is a controversy regarding the subsidies under the Electric Vehicle  (EV) Adoption Policy. The GOI has recently allowed the sale of electric vehicles without batteries to make the Electric vehicle more affordable. Batteries account for half the cost. If the cost of batteries is delinked electric two- and three-wheelers could cost less than fossil-fuel-powered vehicles. But, Manufacturers questioned that if vehicles will be sold without batteries how government would give subsidies since the government incentivizes the purchase of EVs by providing direct purchase subsidies which is linked to the capacity of the battery of the vehicle.