FAME India (Faster Adoption and Manufacture of (Hybrid and) Electric Vehicles) Scheme is an incentive scheme for the promotion of electric and hybrid vehicles in the country. The ultimate objective of the scheme is to promote electric mobility and the scheme gives financial incentives for enhancing electric vehicle production and the creation of electric transportation infrastructure.
Basically, the incentive is provided in the form of subsidies to manufacturers of electric vehicles and infrastructure providers of electric vehicles.
FAME was launched by the Ministry of Heavy Industries and Public Enterprises in 2015 to incentivize the production and promotion of eco-friendly vehicles including electric vehicles and hybrid vehicles.
The Scheme operates in two phases:
Phase I: started in 2015 and was completed on March 31st, 2019.
Phase II: started from April 1st, 2019, will be completed by March 31st, 2022.
Features of FAME
FAME India is a part of the National Electric Mobility Mission Plan. The main thrust of FAME is to encourage electric vehicles by providing subsidies. Under the NEMMP scheme, the government aimed to invest Rs 14000 crore in creating infrastructure and promoting the use of electric vehicles.
Vehicles in most segments – two-wheelers, three-wheelers, electric and hybrid cars and electric buses obtained the subsidy benefit of the scheme.
Focus areas of FAME
The scheme covers Electric and Hybrid technologies like Mild Hybrid, Strong Hybrid, Plug-in Hybrid & Battery Electric Vehicles.
FAME focuses on 4 areas i.e. Technology development, Demand Creation, Pilot Projects and Charging Infrastructure.
Benefits under FAME scheme
Benefits of the FAME scheme was restructured after the launch of FAME -II. Incentives to the various type of vehicles are shown in a later part.
FAME II
The second phase is an expanded version of the first phase. FAME India Phase II has a total outlay of Rs 10000 Crores over a period of three years from 1st April 2019 to 2022.
Allocation for the scheme for 2019-20 is estimated to be at Rs 1,500-crore; Rs 5,000 crore in 2020-21 and Rs 3,500 crore in 2021-22.
FAME-II will cover buses using EV technology; electric, plug-in hybrid and strong hybrid four-wheelers; electric three-wheelers including e-rickshaws and electric two-wheelers.
For the overall monitoring, sanctioning and implementation of the scheme, an inter-ministerial empowered committee – ‘Project Implementation and Sanctioning Committee’ (PISC) that is headed by the heavy industry secretary, shall be constituted.
Following are the incentives are given to various categories of vehicles under FAME – II:
- Incentives will be given on the basis of prescribed ex-factory price limits.
- Electric two-wheelers: incentives will be provided for 10 lakh registered electric two-wheelers of Rs 20,000 each.
- e-rickshaws: incentives to 5 lakh e-rickshaws of Rs 50,000 each.
- Electric four-wheelers: An incentive of Rs 1.5 lakh each to 35,000 electric four-wheelers with an ex-factory price of up to Rs 15 lakh.
- Hybrid four-wheelers: an incentive of Rs 13,000 each to 20,000 strong hybrid four-wheelers with the ex-factory price of up to Rs 15 lakh.
- e-buses: support to 7,090 e-buses with an incentive of up to Rs 50 lakh each having an ex-factory price of up to Rs 2 crore.
Electric charging infrastructure
The scheme proposes for establishing charging infrastructure and for this about 2700 charging stations will be established in metros, other million-plus cities, smart cities and cities of Hilly states across the country. The objective is to create at least one charging station in a grid of 3 km x 3 km.
Similarly, the establishment of charging stations are also proposed on major highways connecting major city clusters.
On the highways, charging stations will be established on both sides of the road at an interval of about 25 km each.
Of the total allocation, Rs 1,000 crore has been allocated for setting up charging stations for electric vehicles in India.
Phase I of FAME
Phase I of the FAME-India Scheme was launched on April 1st, 2015 and extended to March 31, 2019. Its original time period was two years. The scheme was implemented with an outlay of Rs 895 crore. Approximately 2,18,625 Electric Vehicles were ‘promoted’ by FAME I till July 2018.
The mother programme of FAME- the National Electric Mobility Mission Plan (NEMMP) 2020 was launched in 2013 to achieve sales of six-seven million units of electric vehicles and thus to realise fossil fuel saving of 2.2 to 2.5 million tonnes.
Such promotion of electric vehicles will substantially lower vehicular emissions and decrease in carbon dioxide emissions by up to 1.5% by 2020.
In early 2018, the Ministry of Power launched the new National Electric Mobility Programme with broad objectives. Here, the focus is for establishing the electric charging infrastructure and a policy framework to set realise more than 30% electric vehicles by 2030.
The government has announced an outlay of₹10,000 crore for Phase 2 of the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles, or FAME 2 scheme, to boost electric mobility and increase the number of electric vehicles in commercial fleets. Mint takes a look at the FAME 2 scheme and what it means for electric vehicles as well as the auto industry in India.
What are the salient features of the FAME 2 scheme?
The outlay of ₹10,000 crore has been made for three years till 2022 for FAME 2 scheme. The centre has sanctioned ₹8,596 crore for incentives, of which ₹1,000 crore has been earmarked for setting up charging stations for electric vehicles in India. The government will offer them incentives for electric buses, three-wheelers and four-wheelers to be used for commercial purposes.
Plug-in hybrid vehicles and those with a sizeable lithium-ion battery and electric motor will also be included in the scheme and fiscal support offered depending on the size of the battery.
How will FAME 2 scheme help improve charging infrastructure?
The centre will invest in setting up charging stations, with the active participation of public sector units and private players. It has also been proposed to provide one slow-charging unit for every electric bus and one fast-charging station for 10 electric buses.
Projects for charging infrastructure will include those needed to extend electrification for running vehicles such as pantograph charging and flash charging, says a notification by the heavy industries ministry. FAME 2 will also encourage interlinking of renewable energy sources with charging infrastructure.
What is the target?
The centre may incentivize the purchase of 7,090 electric buses with an outlay of ₹3,545 crore, 20,000 hybrids with ₹26 crore, 35,000 four-wheelers with ₹525 crore and 500,000 three-wheelers with ₹2,500 crore.
How will the incentives be offered?
The centre plans to roll out an incentive of ₹10,000 per kilowatt (kW) for two-, three- and four-wheelers, based on the size of their batteries. To encourage state transport units (STUs) to buy more electric buses, ₹20,000 per kW will be offered as an incentive.
The incentives may further be subject to bidding by original equipment manufacturers. A committee will review the incentives after a certain period. Electric buses will be offered incentives on the basis of the operational expenditure model adopted by STUs.
What steps are being taken to make electric vehicles more affordable?
FAME 2 will offer incentives to manufacturers, who invest in developing electric vehicles and its components, including lithium-ion batteries and electric motors.
The centre has asked states to frame their EV policy and provide additional fiscal and non-fiscal incentives to manufacturers and buyers. Only buses priced up to ₹2 crore, strong and plug-in hybrids under ₹15 lakh, three-wheelers under ₹5 lakh and two-wheelers under₹1.5 lakh will be eligible for incentives.
Comments
write a comment