In news- The Department of Heavy Industries through a resolution increased subsidies for electric two-wheelers by 50 percent under the FAME II scheme. It capped incentives for electric two-wheelers at 40 percent (₹15,000 per KWh) of the cost of vehicles, up from 20 percent earlier.
Other FAME 2 recent amendments include-
- The state-owned Energy Efficiency Services (EESL) will launch an aggregate demand for 300,000 electric three-wheelers across a variety of user segments.
- The Ministry will now target cities with over 4 million population, i.e. Ahmedabad, Bangalore, Chennai, Delhi, Hyderabad, Mumbai, etc… with EESL aiming for aggregation of demand for the remaining e-buses on OPEX basis.
About FAME – II-
- Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME-India) Scheme is launched under National Mission on Electric Mobility in 2011/ National Electric Mobility Mission Plan 2020, unveiled in 2013.
- The scheme aims to encourage progressive induction of reliable, affordable and efficient electric and hybrid vehicles (xEV).
- The First Phase of the scheme was initially approved for a period of 2 years, commencing from 1st April, 2015.
- The Scheme has been extended from time to time, with the last extension allowed for a period up to 31st March 2019 .
- It is implemented and monitored by the National Automotive Board under D/o Heavy Industries.
- It is one of the DBT schemes categorized under in-kind mode.
- Government approved Phase-II of FAME Scheme with an outlay of Rs. 10,000 Crore for a period of 3 years commencing from 1st April 2019.
- This phase aims to generate demand by way of supporting 7000 Electric Buses (e-bus), 5 lakh Electric Three Wheelers (e-3W), 55000 Electric Four Wheeler Passenger Cars (including Strong Hybrid) (e-4W) and 10 lakh Electric Two Wheelers (e-2W).
- In addition, creation of Charging Infrastructure is also supported under the Scheme.
- Vehicles fitted with only advanced chemistry batteries, meeting with minimum Technical Criteria and registered as “Motor Vehicle” as per CMVR shall be eligible for incentive under the scheme.
- Scheme will be applicable mainly to vehicles used for public transport or those registered for commercial purposes in e-3W, e-4W and e-bus segments.
However, privately owned registered electric two wheelers (e-2Ws) are also covered under the scheme as a mass segment.
Source: LiveMint
