FASTER ADOPTION AND MANUFACTURING OF (HYBRID &) ELECTRICAL VEHICLES (FAME-II)
1. Context
The Union cabinet chaired by the Prime Minister Shri Narendra Modi has approved the proposal for implementation of scheme titled 'Faster Adoption and Manufacturing of Electric Vehicles in India Phase II (FAME India Phase II)' for promotion of Electric Mobility in the country.
2. Objective
The main objective of the scheme is to encourage Faster adoption of Electric and hybrid vehicle by way of offering upfront Incentive on purchase of Electric vehicles and also by way of establishing a necessary charging Infrastructure for electric vehicles. The scheme will help in addressing the issue of environmental pollution and fuel security.
2. About FAME-II
- The total fund requirement for this scheme is Rs. 10,000 crores over three years from 2019-20 to 2021-22.
- The scheme with a total outlay of Rs 10000 Crores over the period of three years will be implemented with effect from 1st April 2019.
- This scheme is the expanded version of the present scheme titled 'FAME India1 which was launched on 1st April 2015, with a total outlay of Rs. 895 crores
- The FAME India scheme has been successful in promoting the adoption of electric and hybrid vehicles in India.
- In the first phase of the scheme, over 1.5 lakh (150,000) electric vehicles were sold. In the second phase, the sale of electric vehicles is expected to increase significantly.
- The FAME India scheme is one of the government of India's initiatives to promote clean energy and reduce pollution.
- The scheme is expected to help India achieve its target of 30% electric vehicle sales by 2030
3.Key features of FAME India Phase II
- The scheme provides financial incentives for the purchase of electric and hybrid vehicles, including:
- Demand Incentive - This is a one-time incentive given to the buyer of an electric or hybrid vehicle. The amount of the incentive depends on the type of vehicle and its battery capacity.
- Production Linked Incentive (PLI) - This is an incentive given to manufacturers of electric vehicles and components. The incentive is based on the number of vehicles and components manufactured.
- The scheme also provides incentives for the development of charging infrastructure, including:
- Infrastructure Development Charge (IDC) - This is a one-time incentive given to the developer of a charging station. The amount of the incentive depends on the capacity of the charging station.
- Fast Charging Corridors - This is an incentive given to the developer of a network of fast charging stations. The incentive is based on the number of stations and their capacity.
- The scheme also provides incentives for research and development in the field of electric vehicles, including:
- R&D Subsidy - This is an incentive given to companies that are developing new technologies for electric vehicles. The incentive is based on the amount of research and development expenditure incurred.
4. Impact of FAME India
- The FAME India scheme has had a positive impact on the adoption of electric vehicles in India. In the first phase of the scheme, over 1.5 lakh (150,000) electric vehicles were sold. In the second phase, the sale of electric vehicles is expected to increase significantly.
- The FAME India scheme has also helped to create jobs in the electric vehicle manufacturing and charging infrastructure sectors. According to a study by the National Institute of Electric Vehicles, the FAME India scheme has created over 100,000 jobs in the electric vehicle sector.
- The FAME India scheme is expected to help India achieve its target of 30% electric vehicle sales by 2030
- The government of India is working to address these challenges. For example, the government is providing subsidies to reduce the cost of electric vehicles. The government is also working to increase the number of charging stations in the country
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Previous Year Questions
1. Choose the correct option regarding FAME Scheme?
A.To promote the manufacturing of electric and hybrid vehicle technology
B.FAME stands for Faster adoption and Manufacturing of Hybrid and Electric vehicles
C.FAME India is part of the National Electric mobility Mission Plan
D. All of the above
Answer -D
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Source:pib
