The Indian government recently authorized the funding of 670 Electric buses for Maharashtra, Goa, Gujarat, and Chandigarh, along with 241 Charging Stations in Madhya Pradesh, Tamil Nadu, Kerala, Gujarat, and Port Blair. This was done under Phase-II of the Faster Adoption and Manufacture of (Hybrid &) Electric Vehicles in India (FAME India) Scheme.
Introduction to the FAME India Scheme
FAME India is a key component of the National Electric Mobility Mission Plan. It aims to promote the use of electric vehicles by providing subsidies. All vehicle segments can benefit from the scheme, which covers Hybrid & Electric technologies such as Mild Hybrid, Strong Hybrid, Plug-in Hybrid, and Battery Electric Vehicles. The department of Heavy Industries, Ministry of Heavy Industries and Public Enterprises is assigned to monitor the scheme.
The Two Phases of the FAME India Scheme
Phase I of the FAME India Scheme began in 2015 and concluded on March 31, 2019. Phase II, which started in April 2019, is projected to end on March 31, 2022.
Focus Areas of the FAME India Scheme
The FAME India Scheme prioritises four areas: Technology Development, Demand Creation, Pilot Projects, and Charging Infrastructure.
Objectives of the Scheme
The main objectives of the scheme are to promote the quick adoption of electric and hybrid vehicles by providing upfront incentives on their purchase, establish a comprehensive charging infrastructure, and address environmental pollution and fuel security issues.
Key Features of Phase II
Phase II emphasizes the electrification of public transport, including shared transport. With aid from subsidies, it aims to support approximately 7000 e-Buses, 5 lakh e-3 Wheelers, 55000 e-4 Wheeler Passenger Cars, and 10 lakh e-2 Wheelers.
In the 3-Wheel (W) and 4-Wheel (W) segment, incentives are primarily for vehicles used for public transport or those registered for commercial purposes. For the 2-Wheel (W) segment, private vehicles are the primary focus.
Advanced Technology and Infrastructure Development
To encourage advanced technologies, incentives will only be extended to vehicles fitted with advanced batteries such as Lithium-Ion battery and other new technology batteries.
The scheme also proposes the establishment of a charging infrastructure. Approximately 2700 charging stations will be established in metros, other million plus cities, smart cities, and cities of Hilly states across the country. This will ensure the availability of at least one charging station in every 3 km x 3 km grid.
Charging stations will also be established on major highways connecting major city clusters, with stations on both sides of the road at an interval of about 25 km each.
