The much awaited Faster Adoption and Manufacturing of Electric Vehicles II (FAME II) scheme has finally been cleared by the union cabinet on February 28, 2019 with a total allocation of ₹ 10,000 crore. The allotted amount will be laid out in the next three years with the scheme being implemented from April 1, 2019. The new scheme is in succession to the FAME I scheme which earmarked an investment of ₹ 895 crore in 2015. The current allocation of ₹ 10,000 crore has been channelized to speed up the development of EVs and EV infrastructure in a bid to achieve the target of 100 per cent electrification of vehicles by 2030.
The FAME II scheme primarily aims to incentivise the purchase of electric vehicles and establishing the requisite charging infrastructure for electric vehicles. The emphasis will also continue to be on the electrification of public transport vehicles and other shared mobility solutions like last mile connectivity solutions such as three-wheelers and light commercial vehicles. The incentives will be mainly given to the commercial three-wheeler and four-wheeler vehicles along with private two-wheelers.
According to FAME II private electric two-wheelers will get incentives
The government is targeting to facilitate the purchase of 10 lakh electric two-wheelers, 5 lakh electric three-wheelers, 55,000 electric four wheelers and 7000 buses within the timeframe of its regulation. However, incentives will be given only to those vehicles which are powered by a lithium-ion battery or run on other advance technology like fuel cell as an effort to encourage new age technologies. This eliminates the prospects of electric vehicles powered by lead acid batteries which form a major chunk of electric two-wheelers in India.
Dr. Pawan Goenka, Managing Director, Mahindra said, "We applaud the approval of FAME II scheme by the Union Cabinet. The new outlay of Rs 10,000 crore over a period of three years provides a stable policy to promote green mobility in India. It addresses the key issues including National Energy Security, Mitigation of the adverse impact of vehicles on the environment and Growth of domestic technology and manufacturing capabilities. The revised FAME II removes all the uncertainty and will put Electric Vehicles in the fast lane. Mahindra supports the Central Government's focus to boost EVs in public transportation and now requests local authorities to help facilitate plying of electric vehicles on Indian roads. Government support with the FAME II scheme is holistic and includes focus on charging Infrastructure with a clear emphasis on "Make in India". We feel that it is now the responsibility of suppliers, OEMs and mobility service providers to invest in EVs and make India's EV dream become a reality."
