The Union cabinet has recently given its approval to the ‘Faster Adoption and Manufacturing of Electric Vehicles in India Phase II (FAME India Phase II)’ scheme. This initiative aims to promote Electric Mobility in India and will be implemented with effect from 1st April 2019. With a total budget of Rs 10,000 Crores spread over three years (2019-20 to 2021-22), the scheme represents an expansion on ‘FAME India1’, launched in 2015 with a total outlay of Rs. 895 crores.
FAME India Phase II Objectives
The FAME India Phase II scheme has several key objectives. One of these involves encouraging the faster adoption of electric and hybrid vehicles by offering upfront incentives for their purchase. Establishing a necessary charging infrastructure for electric vehicles is also part of this initiative. The scheme is expected to address significant issues such as environmental pollution and fuel security.
Salient Features of the Scheme
FAME India Phase II emphasizes the electrification of public transportation, including shared transport. Incentives under the scheme will apply primarily to 3-Wheel (W) and 4-Wheel (W) vehicles that are used for public transport or registered for commercial purposes. For the 2-Wheel (W) segment, the focus will shift towards private vehicles.
To promote advanced technology, the scheme’s benefits will only extend to vehicles fitted with advanced batteries, such as Lithium-Ion batteries and other new technology batteries.
Establishment of Charging Infrastructure
An integral part of the scheme is the proposal for the establishment of charging infrastructure. Under this scheme, nearly 2700 charging stations are planned to be set up across metros, other million plus cities, smart cities and cities in hilly states. This strategy ensures at least one charging station within a grid of 3 km x 3 km.
Charging stations are also proposed to be installed on major highways connecting principal city clusters. These stations will be set up at frequent intervals of about 25 km on both sides of the road.
Comparison Between FAME India I & II
| Parameters | FAME India I | FAME India II |
|---|---|---|
| Period | 2015-2019 | 2019-2022 |
| Budget | Rs. 895 Crores. | Rs. 10,000 Crores |
| Focus | Initial Promotion of EVs | Expansion across all vehicle types and charging infrastructure |
Impact on Pollution and Fuel Security
The FAME India Phase II scheme is expected to have a significant impact on environmental pollution and fuel security. By promoting the adoption of electric vehicles, it aims to reduce reliance on fossil fuels and decrease the emissions contributing to air pollution.
