Madhavi Gaur
October 04, 2023 01:52
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The FAME India Scheme, part of the National Electric Mobility Mission Plan (NEMMP), is a government subsidy initiative. FAME is a government-supported effort designed to encourage the widespread adoption of electric vehicles in the country.
Fame India Scheme: There has been a notable surge in pollution in the recent years resulting from vehicle emissions. In an effort to mitigate the environmental impact of diesel and petrol-powered vehicles and encourage the adoption of electric or hybrid vehicles in India, the Central Government introduced the Fame India Scheme in 2015.
The FAME India Scheme, part of the National Electric Mobility Mission Plan (NEMMP), is a government subsidy initiative. FAME, which stands for Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India, is a government-supported effort designed to encourage the widespread adoption of electric vehicles in the country.
The global emphasis on the growth of electric vehicles is a significant priority for governments worldwide. Consequently, schemes and initiatives related to this sector hold great importance in competitive exams such as the UPSC and state PSC exams. For the UPSC Civil Services exam, the FAME India Scheme is particularly pertinent, falling under the syllabus of the General Studies (GS-3) paper.
The Fame India Scheme is an incentive initiative designed to promote the adoption of electric and hybrid vehicles. Its full name is “Faster Adoption and Manufacturing of Electric and Hybrid Vehicles in India.” This scheme provides subsidies to manufacturers and infrastructure providers of electric vehicles and is part of the National Electric Mobility Mission Plan, launched by the Ministry of Heavy Industries and Public Enterprises.
The FAME India Scheme, an acronym for Faster Adoption and Manufacturing of Electric Vehicles in India, was introduced during the Union Budget 2015-16. Its primary objective is to stimulate the widespread adoption of electric vehicles, contributing to a cleaner and more sustainable transportation system in the country. Integral to the National Electric Mobility Mission Plan (NEMMP) – 2020, the FAME India Scheme plays a crucial role in addressing issues related to vehicular emissions and reducing reliance on fossil fuels. Administered by the Department of Heavy Industry, FAME 2 builds on its predecessor by offering financial incentives to both buyers and manufacturers. Additionally, it places a strong emphasis on the development of charging infrastructure and promotes research and development within the electric mobility sector.
The primary goals of the Fame India Scheme include:
Phase I:
Phase II:
The scheme offers several advantages:
The benefits of the Fame India scheme are available for:
To benefit from Phase II of the Fame India Scheme, applicants must follow these steps:
Applicants should adhere to the instructions and note that there is no alternative method for applying to the Fame India Scheme.
With this comprehensive understanding of the Fame India Scheme, individuals can contribute to a greener and cleaner future by opting for electric vehicles.
The Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME II) is a significant initiative by the Government of India aimed at fostering the development of Electric Vehicles (EVs). This initiative aligns with global efforts to combat climate change.
The Government of India has earmarked a budget of Rs 10,000 crores for the second phase of FAME II. Launched in 2019, this phase is set to conclude by 2022. The scheme is a crucial component of the National Electric Mobility Mission Plan (NEMMP), with its first phase spanning from 2015 to 2019.
In a recent update, the Central government has raised the subsidy for electric two-wheelers under FAME II by 50%. The new subsidy is set at Rs 15,000 per kWh, up from the previous Rs 10,000 per kWh. Furthermore, the subsidy cap for electric two-wheelers has been raised to 40% of their cost, from the earlier 20%.
The enhanced subsidies on electric two-wheelers underscore the government’s commitment to supporting the adoption of Electric Vehicles. This move aims to make electric two-wheelers more affordable, benefiting a broad spectrum of consumers, particularly those interested in electric motorcycles and scooters.
Improved incentives for electric two-wheelers are expected to drive increased penetration and stimulate indigenous investments in future technologies. This aligns with the broader goal of achieving sustainable mobility solutions crucial for addressing future environmental challenges.
FAME II has been allocated a substantial budget of Rs 10,000 crores for the period from 2019 to 2022.
A noteworthy aspect of the scheme is the allocation of Rs 1,000 crores for the establishment of charging stations for electric vehicles. The proposal includes provisions for both slow charging units and fast charging stations, with specific targets for electric buses.
The Central Government plans to incentivize the purchase of approximately 5 lakh three-wheelers, 7000 electric buses, and 35,000 four-wheelers under FAME II.
The Department of Heavy Industries, under the Ministry of Heavy Industries and Public Enterprises, serves as the monitoring authority for the FAME India Scheme.
Manufacturers involved in the development of electric vehicles, lithium-ion batteries, and electric motors are eligible for government incentives.
The Central Government has directed states to formulate policies that provide incentives to both manufacturers and buyers of electric vehicles.
Several concerns are associated with the implementation of the FAME India scheme:
Some key facts and figures related to the FAME India Scheme are outlined below:
| Criteria | Details |
|---|---|
| Full Name of the Scheme | Faster Adoption and Manufacturing of Electric Vehicles |
| Announcement | Union Budget 2015-16 |
| Launch Date | 1st April 2015 |
| Nodal Department | Department of Heavy Industry, Ministry of Heavy Industries |
| Type of Scheme | Central Sector Scheme |
| Objective | Support the production of electric and hybrid vehicles |
| Phases | Two Phases – Phase 1: 1st April 2015 to 31st March 2019 Phase 2: 1st April 2019 to 31st March 2024 |
| Financial Outlay | Phase 1: Rs. 895 Crore Phase 2: Rs. 10,000 Crore |
| Current Status of EVs in India | Market Share – 2-Wheeler: 30%, 3-Wheeler: 65%, 4-Wheeler: 2.5% Top States/UTs – Uttar Pradesh, Delhi, Assam |
| Benefits of the Scheme | Subsidy Incentives – Electric two-wheelers: Rs. 15,000/KWh Electric buses: Rs. 20,000/KWh Other Vehicles: Rs. 10,000/KWh |
| Way Forward | Address the issue of charging infrastructure – Revisit subsidy distribution to provide maximum benefit – Consider innovative incentives like eliminating road tax and registration fees, free tolls, and dedicated parking for electric vehicles |
It is crucial for the government to address the skewed subsidy distribution, focusing on providing maximum benefits to the larger segment of two-wheelers. Additionally, addressing charging infrastructure challenges and implementing innovative incentives can further promote the adoption of electric vehicles in India.
The FAME II scheme represents a comprehensive government initiative to accelerate the adoption of electric vehicles, with a keen focus on affordability, infrastructure development, and sustainability. Aspirants preparing for exams, particularly the IAS Exam, would find the evolving landscape of electric mobility in India a relevant and important topic.
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