FAME II scheme for electric mobility gets nod

FAME-II aims to encourage faster adoption of electric and hybrid vehicle through upfront incentive on purchase of electric vehicles as well as by way of establishing necessary charging infrastructure for electric vehicles

February 28, 2019

FAME-II, with total outlay of over US$1.4 billion for a period of three years, will be implemented with effect from April 2019

It is an expanded version of the present scheme titled 'FAME I’ which was launched in April 2015 with outlay of US$128 million

FAME-II proposes to set up 2,700 charging stations across India to ensure at least one charging station in a grid of 3 km x 3 km

Making India’s passenger mobility electric can cut fuel demand by 64 per cent and cut carbon emissions by 37 per cent by 2030

The Union cabinet chaired by Prime Minister Narendra Modi has approved a plan for the implementation of the Faster Adoption and Manufacturing of Electric Vehicles Phase II (FAME II) scheme for promotion of electric mobility in the country. The scheme, with total outlay of over US$1.4 billion for a period of three years, will be implemented with effect from April 2019. It is an expanded version of the present scheme titled ‘FAME I’ which was launched in April 2015 with total outlay of over US$128 million. FAME-II aims to encourage faster adoption of electric and hybrid vehicle through upfront incentive on purchase of electric vehicles as well as by way of establishing necessary charging infrastructure for electric vehicles.

The scheme will help instrumental in tackling vehicular pollution as well as fuel security. FAME-II will also put emphasis on electrification of public transportation, including shared transport. As a result, demand incentives from operational expenditure model for electric buses will be delivered through state and city transport corporation (STUs). While in 3W and 4W segments, incentives will be applicable primarily to vehicles used for public transport or registered for commercial purposes, in e-2W segment, the focus will be on private vehicles. FAME-II plans to support 1 million e-2W, 500,000 e-3W, 55,000 4Ws and 7,000 buses. The policy is critical to securing investment in setting up electric mobility ecosystem in India.

To encourage advanced technologies in mobility, incentives will be extended to only those vehicles that are fitted with the latest battery technology like Lithium Ion, and others. The scheme proposes to set up around 2,700 charging stations in metros, other million-plus cities, smart cities and cities in hilly states across the country so that there will be availability of at least one charging station in a grid of 3 km x 3 km. Charging stations have also been proposed for highways connecting major city clusters at an interval of about 25 km. Making India’s passenger mobility shared, electric, and connected can cut fuel demand by 64 per cent while reducing carbon emissions by 37 per cent by 2030. FAME-II will aid this shift.

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