India Moves A Step Closer To Electric Vehicles As The Government Gives Nod For FAME II Scheme

The global automobile industry is overly dependent on fossil fuel powered cars such as petrol, diesel, CNG, LPG. Fossil fuels prove to be harmful, polluting for the environment at the same time burdening the limited reserves of natural fossil fuels available on earth. Arguably the closest practical alternative to fossil fuel powered vehicles is electric vehicles (EVs). Governments all over the world are implementing various policies, incentives to both the car manufacturer and customers with respect to manufacturing and purchase of hybrids and EVs. In 2015, the Indian government introduced the FAME (Faster Adoption and Manufacture of (Hybrid and) Electric Vehicles) India Scheme. The FAME India scheme is a part of the National Electric Mobility Mission Plan of the government of India. The FAME India scheme is aimed at encouraging electric vehicles by providing subsidies. The FAME scheme is designed to be rolled out in phases. Phase 1 of this scheme implemented in 2015 with an expenditure of Rs.895 crore.

   The Cabinet Committee on Economic Affairs has approved Phase 2 of the FAME India scheme. The move by the government comes as great news for the automobile industry as India moves a step closer to electric vehicles. Phase 2 of the FAME India scheme will come into effect from 1^st April 2019 for a period of 3 years till 31^st March 2022. By 2030, the Indian government wants to convert 30% of vehicles to electric powered ones. The FAME India scheme is a very good initiative and will certainly help the government in reaching this objective by 2030. The FAME India scheme has 4 focus areas – Technology Development, Demand Creation, Pilot Projects and Charging Infrastructure. Phase 2 of FAME will have an emphasis on electrification of public transportation which includes shared transportation services. The FAME 2 scheme will catapult India to an electric mobility future. The Society of Manufacturers of Electric Vehicles estimates the sales of EVs will more than double to 2 lakh units in the coming year. The government in a statement said that the FAME 2 scheme is planned to support – 10 lakh electric two-wheelers, 5 lakh electric three-wheelers, 55,000 electric four-wheelers and 7000 buses. A plan for the establishment of about 2700 electric charging stations will is also a part of the FAME 2 scheme.

   India is one of the largest automobile markets in the world. Being a very lucrative market for electric vehicles car manufactures will be looking to enter the market soon as the Indian market evolves and transitions towards adaptation of EVs. The FAME India scheme will ensure the transition process is smoother for both the car manufactures as well as customers.