Centre Sanctions 670 Electric Buses, 241 Charging Stations Under Phase-II Of FAME India Scheme
Context: The Centre sanctioned 670 electric buses in Maharashtra, Goa, Gujarat, and Chandigarh as also 241 charging stations in Madhya Pradesh, Tamil Nadu, Kerala, Gujarat and Port Blair under Phase-II of FAME India Scheme.
The government has announced an outlay of ₹10,000 crore for Phase 2 of the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles, or FAME 2 scheme, to boost electric mobility and increase the number of electric vehicles in commercial fleets. Mint takes a look at the FAME 2 scheme and what it means for electric vehicles as well as the auto industry in India.
What are the salient features of FAME 2 scheme?
- The outlay of ₹10,000 crore has been made for three years till 2022 for FAME 2 scheme.
- The centre has sanctioned ₹8,596 crore for incentives, of which ₹1,000 crore has been earmarked for setting up charging stations for electric vehicles in India.
- The government will offer the incentives for electric buses, three-wheelers and four-wheelers to be used for commercial purposes.
- Plug-in hybrid vehicles and those with a sizeable lithium-ion battery and electric motor will also be included in the scheme and fiscal support offered depending on the size of the battery.
How will FAME 2 scheme help improve charging infrastructure?
- The centre will invest in setting up charging stations, with the active participation of public sector units and private
- It has also been proposed to provide one slow-charging unit for every electric bus and one fast-charging station for 10 electric buses.
- Projects for charging infrastructure will include those needed to extend electrification for running vehicles such as pantograph charging and flash charging.
- FAME 2 will also encourage interlinking of renewable energy sources with charging infrastructure.
What is the target?
- The centre may incentivize the purchase of 7,090 electric buses with an outlay of ₹3,545 crore, 20,000 hybrids with ₹26 crore, 35,000 four-wheelers with ₹525 crore and 500,000 three-wheelers with ₹2,500 crore.
How will the incentives be offered?
- The centre plans to roll out an incentive of ₹10,000 per kilowatt (kW) for two-, three- and four-wheelers, based on the size of their batteries.
- To encourage state transport units (STUs) to buy more electric buses, ₹20,000 per kW will be offered as incentive.
- The incentives may further be subject to bidding by original equipment manufacturers.
- Electric buses will be offered incentives on the basis of the operational expenditure model adopted by STUs.
What steps are being taken to make electric vehicles more affordable?
- FAME 2 will offer incentives to manufacturers, who invest in developing electric vehicles and its components, including lithium-ion batteries and electric motors.
- The centre has asked states to frame their EV policy and provide additional fiscal and non-fiscal incentives to manufacturers and buyers.
- Only buses priced up to ₹2 crore, strong and plug-in hybrids under ₹15 lakh, three-wheelers under ₹5 lakh and two-wheelers under ₹1.5 lakh will be eligible for incentives.
1.png)
