CCEA Approves Phase 2 of FAME Scheme

The Cabinet Committee on Economic Affairs (CCEA) has approved Rs 10,000 crore package over three years till 2022 for the second phase of Faster Adoption & Manufacturing of Electric (and hybrid) vehicles (FAME) scheme.

FAME II Scheme

• The FAME scheme is aimed at encouraging faster adoption of Electric and hybrid vehicle by way of offering an upfront incentive on the purchase of Electric vehicles and also by way of establishing a necessary charging Infrastructure for electric vehicles.
• FAME II emphasizes on electrification of the public transportation that includes shared transport.
• The Scheme would provide incentives on operational expenditure model for electric buses which will be delivered through State/city transport corporation (STUs).
• In the 3-wheeler and 4-wheeler segment incentives will be applicable mainly to vehicles used for public transport or registered for commercial purposes.
• In the 2-wheeler segment, the focus would be on private vehicles.
• The Scheme aims to support 10 Lakhs e-2W, 5 Lakhs e-3W, 55000 4Ws and 7000 Buses.
• The benefit of incentives will be extended for only those vehicles which are fitted with an advanced battery like a Lithium-Ion battery and other new technology batteries.
• The Scheme also proposes for the establishment of charging infrastructure, whereby about 2700 charging stations will be established across the country so that there is an availability of at least one charging station in a grid of 3 km x 3 km.

FAME-II is the expanded version of the present scheme titled FAME India 1 which was launched on 1st April 2015.

Month: Current Affairs - March, 2019