Government withdraws subsidy to mild hybrid vehicles under FAME scheme

The Union Ministry of Heavy Industries and Public Enterprises has withdrawn subsidy given to mild hybrid vehicles under FAME India (Faster Adoption and Manufacturing of Hybrid and Electric vehicles in India) scheme.
 Earlier, mild hybrid, strong hybrid, plug-in hybrid and pure electric vehicles were given incentives under the FAME India scheme.

What is mild hybrid vehicle?

• A mild hybrid vehicle has an electric motor, which on its own cannot run a vehicle but assists normal engine by using recovered energy stored in a battery and helps save fuel
• It uses the energy generated while applying the brakes and turns it into electric energy which is then stored in a battery. This energy can then be used to turn the starter motor when the car’s start stop system needs it.
• Mild-hybrids are 7-15% more fuel efficient as compared to conventional hybrid systems that can run on pure electric power for short distances too.

About FAME India Scheme 

• The FAME India scheme was launched in 2015 under National Electric Mobility Mission Plan (NEMMP) with an aim to promote eco-friendly vehicles in the country.
• It objectives is to provide fiscal and monetary incentives for adoption and market creation of both hybrid and electric technologies vehicles in the country.
• It will also support the hybrid or electric vehicles market development and its manufacturing eco-system in the country in order to achieve self-sustenance in stipulated period.
• It is being administered by the Heavy Industries Ministry. It will provide demand incentives to electric and hybrid vehicles from two-wheeler to buses.

National Electric Mobility Mission Plan (NEMMP) 2020: It aims to achieve national fuel security by promoting hybrid and electric vehicles in the country. It has set ambitious target of 6-7 million sales of hybrid and electric vehicles year on year from 2020 onwards.

Month: Current Affairs - April, 2017