FAME II Scheme Receives Government Approval — A Big Boost For Electric Vehicles In India

FAME II Scheme has been approved by the Indian government. The new electric mobility scheme will be implemented on April 1st, 2019. As part of the new FAME II scheme, the government will allocate Rs 10,000 crore towards electric mobility solutions in the country over the next two years.

The Union Cabinet, led by Prime Minister Narendra Modi approved the new scheme. The new FAME (Faster Adoption and Manufacturing of Electric Vehicles in India) scheme is an extended version of the previous FAME I; first introduced in April 2015. The FAME I scheme in India had a total allocation of Rs 895 crores.

Fame 2 scheme india

The new FAME II scheme will encourage faster adoption of hybrids, plug-in hybrids and electric vehicles in India. This will be through upfront incentive offers for electric vehicles and also establishing necessary charging infrastructure, which has been severely lacking in India.

Apart from the above, FAME II will also concentrate on the electrification of public transportation in the country, which also includes shared transport. The incentives for electric buses will be provided by state/city transport corporations on an Operational Expenditure Model.

Incentives will also be applicable to three and four-wheelers segments; mainly to those used for public transport or for other commercial purposes. However, for the electric two-wheeler segment, the focus will be mainly on private vehicles.

Fame 2 scheme india

Apart from various incentives for two, three and four-wheeler segments, FAME II will also offer benefits to those vehicles with advanced technologies and/or batteries.

FAME II scheme in India will also look into establishing electric charging infrastructures in the country. The scheme aims to introduce up to 2,700 charging stations across various metros, smart cities, hilly-states and other million-plus cities.

These charging stations will also be set up along the highways, connecting different cities. The government recently confirmed that they will set up electric charging stations on highways at an interval of every 25km on both sides.

Fame 2 scheme india

Pawan Goenka, Managing Director, Mahindra & Mahindra, stated:

"We applaud the approval of FAME II scheme by the Union Cabinet. The new outlay of Rs 10,000 crore over a period of three years provides a stable policy to promote green mobility in India. It addresses the key issues including National Energy Security, Mitigation of the adverse impact of vehicles on the environment and Growth of domestic technology and manufacturing capabilities. The revised FAME II removes all the uncertainty and will put Electric Vehicles in the fast lane. Mahindra supports the Central Government's focus to boost EVs in public transportation and now requests local authorities to help facilitate plying of electric vehicles on Indian roads.

"Government support with the FAME II scheme is holistic and includes focus on charging Infrastructure with a clear emphasis on "Make in India". We feel that it is now the responsibility of suppliers, OEMs and mobility service providers to invest in EVs and make India's EV dream become a reality".

SMEV (Society of Manufacturers of Electric Vehicles), also released a statement, stating:

"We are thankful to the government for accepting our demands for a long-term scheme with substantial fund support. The support would encourage associated industry players to invest in the sector, which will further help in creating an ecosystem, locally. We look forward to seeing the final notification from the Ministry, which will give us clarity on the government's roadmap of e-mobility."

Thoughts On FAME II Scheme In India

The new FAME II scheme in the country has finally received the approval of the Indian government, led by the Prime Minister himself. The FAME II scheme will come as a big boost towards electrification of vehicles in the country. It will also allow and encourage more automotive manufacturers to enter the EV segment in India.

English
Read more on: #auto news #green vehicles
Article Published On: Friday, March 1, 2019, 19:03 [IST]
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