Reduced subsidy on Electric vehicles under FAME II (Faster Adoption of Manufacturing of Electric Vehicles).
Recently, the Government has reduced subsidy on Electric vehicles under FAME II (Faster Adoption of Manufacturing of Electric Vehicles).
Objectives
- To encourage faster adoption of electric and hybrid vehicle by the way of market creation and indigenization.
- To provide fiscal and monetary incentives for adoption and market creation of both hybrid and electric technologies vehicles in the country.
- To achieve the target of more than 30% electric vehicles by 2030.
- To encourage the switch to electric mobility to reduce carbon emissions in line with the COP 21 agreement and save fuel.
Salient features:
- Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME-India) Scheme is launched under National Mission on Electric Mobility in 2011 under National Electric Mobility Mission Plan 2020.
o Scheme is implemented by the Ministry of Heavy Industries.
- FAME- Phase I was initially approved for a period of 2 years, commencing from 2015 with a total outlay of Rs. 895 crores.
o The Scheme has been extended from time to time, with the last extension allowed for a period up to 31st March 2019.
- Government has 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.
o FAME India Phase II has been extended till 2024.
Key features of FAME Phase II
o Focus on public transportation: FAME II has greater focus on demand-creation by pushing adoption of EVs in public transport/commercial segment (in comparison to consumer segment).
✓ It is planned to support 10 Lakhs e-2W (electric – 2-Wheeler), 5 Lakhs e-3W, 55000 4Ws and 7000 Buses.
✓ Privately owned registered e-2Ws are also covered under the scheme as a mass segment.
✓ Recently, the Government has put a cap on incentives for electric two-wheelers which will be 15 per cent of the ex-factory price of vehicles from 40 percent at present.
o Applicability: Vehicles, fitted with only advanced chemistry battery, meeting with minimum technical criteria and registered as Motor Vehicle as per CMVR shall be eligible for incentive under the scheme.
o Demand Incentives: Out of total budgetary support, about 86 percent of fund has been allocated for Demand Incentive to create demand for EVs in the country.
o Local manufacturing: Special incentives will be given for local manufacturing of critical components for electric vehicles, especially the lithium ion batteries.
✓ Only advanced battery and registered vehicles will be incentivized under the scheme.
o Establishment of charging infrastructure: About 2700 charging stations will be established in metros, million plus cities, smart cities, and cities of hilly states across the country.
✓ The guidelines propose to set up at least one charging station in a grid of 3km x 3km in the cities and on both sides of highways connecting major city clusters at every 25km.
✓ Existing retail outlets of oil marketing companies (OMCs) will be given higher preference for setting up public charging stations.
https://todaynewslife.com/ude-desh-ka-aam-nagrik-udan-scheme/