Yet another electric mobility hiccup as Government extends FAME scheme by six months

In the current FAME scheme, electric scooters attract incentives ranging between Rs 1700 to Rs 39,000, three-wheelers incentives range from Rs 3300 and Rs 61,000. Electric and hybrid cars are also given a benefit from Rs 11,500 to Rs 1.43 lakh.

By:Published: April 14, 2018 3:26:32 PM
Representational image: Electric cars in India

Government’s initiative of Faster Adoption & Manufacturing of Hybrid and Electric Vehicles (FAME) scheme expired on 1st April 2018 has been renewed by the government by another six months confirmed Department of Heavy Industry in a notification. With NITI Aayog now leading the charge towards zero-emission vehicles, it is now confirmed that the rollout of FAME II has been further delayed by at least six months. FAME II is reportedly the advanced version of government’s strong focus to promote the use of electric and hybrid vehicles in the country. This is also the third time in two years, that government has extended the current scheme.

In the current FAME scheme, electric scooters attract incentives ranging between Rs 1700 to Rs 39,000, three-wheelers incentives range from Rs 3300 and Rs 61,000. Electric and hybrid cars are also given a benefit from Rs 11,500 to Rs 1.43 lakh. Electric buses cost about Rs 55 lakh less under the FAME scheme. FAME was first introduced in 2015 under National Electric Mobility Mission Plan (NEMMP) under which government was to invest around Rs 14,000 crore to promote the use of greener technology and develop infrastructure to support them.

The statement said, “FAME India scheme is extended for a further period of six months i.e. upto 30th September 2018 or till the date of launching of Phase-II of FAME-India Scheme, whichever is earlier. The extension is deemed to have taken effect on 1st April 2018.”

“We thank the government for extending the FAME scheme for another six months. It would certainly help the industry to move forward. Also, we are looking forward to the FAME 2 scheme, which we expect would have a much more constructive approach to achieve the desired results.” said Sohinder Gill, Director- Corporate Affairs, Society of Manufacturers of Electric Vehicles (SMEV).

Our primary objective will be that the country’s public transport should be 100 per cent electric. If the public transport is 100 per cent, then we can reduce pollution to a great extent,” Geete said at a press conference here.

Earlier, Minister for Heavy Industries and Public Sector Enterprises, Anant Geete, had said that under FAME II the primary objective will be that India’s public transport should be 100 percent electric. “If the public transport is 100 percent, then we can reduce pollution to a great extent.” Since then several Indian states have applied to procure electric buses. Going forward expect the government to roll out a number of electric buses, electric three-wheelers and electric shared cabs for multi-modal public transport.

Department of Heavy Industry received 47 proposals from 44 cities across 21 states having requirement of 3,144 buses, 2,430 e-four-wheeler taxis and 21,545 e-three wheeler autos with the total financial support of Rs 4,054.6 crore sought from the Government of India.

After evaluating the proposals, 11 cities were selected for funding under the present EoI as the pilot project for multi-modal electric public transport under the FAME India scheme of the government. The selected cities include Delhi, Ahmedabad, Bengaluru, Jaipur, Mumbai, Lucknow, Hyderabad, Indore, Kolkata, Jammu and Guwahati.

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