NEW DELHI :A total of 1.85 lakh electric vehicles (EVs) have been incentivized under the second phase of the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (Fame) scheme till now, according to the ministry of heavy industries (MHI).
NEW DELHI :A total of 1.85 lakh electric vehicles (EVs) have been incentivized under the second phase of the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (Fame) scheme till now, according to the ministry of heavy industries (MHI).
The government had rolled out the ₹10,000 crore Fame scheme, which is designed to support the electrification of public and shared transport and help create a charging infrastructure. The scheme is an important part of the government’s strategy to reduce vehicular emissions and dependence on fossil fuels. Money allocated under Fame-2 is to be spent to subsidize 500,000 electric three-wheelers, 1 million electric two-wheelers, 55,000 electric passenger vehicles and 7,090 electric buses.
The government had rolled out the ₹10,000 crore Fame scheme, which is designed to support the electrification of public and shared transport and help create a charging infrastructure. The scheme is an important part of the government’s strategy to reduce vehicular emissions and dependence on fossil fuels. Money allocated under Fame-2 is to be spent to subsidize 500,000 electric three-wheelers, 1 million electric two-wheelers, 55,000 electric passenger vehicles and 7,090 electric buses.
“In the calendar year 2021, a total of 1.4 lakh electric vehicles (1.19 lakh electric two-wheelers, 20,420 electric three-wheelers and 580 electric four-wheelers) have been incentivized upto 16 December 2021 amounting to an incentive of about ₹500 crore under Phase-11 of Fame. A total of 1.85 lakh electric vehicles have been incentivized under Fame II till now," MHI said in its year-end review.
The scheme’s first phase began on 1 April 2015 and was extended till 31 March 2019, and the second phase (Fame-2) that began on 1 April 2019 was to end on 31 March 2022. Mint earlier reported about the central government plans to extend its ambitious scheme to promote electric mobility by two years till 31 March 2024.
“Allocation of ₹1000 crore has also been made under FAME II for provision of EV charging stations," MHI said in its year-end- review and added, “FAME India II Scheme was redesigned in June 2021 based on experience particularly during Covid-19 pandemic and feedback from industry and users. The redesigned scheme aims at faster proliferation of Electric Vehicles by lowering the upfront costs."
At Glasgow last month, Prime Minister Narendra Modi promised net-zero carbon emissions by 2070. The government aims to turn the country into a global hub for EV manufacture and has approved a ₹18,100 crore production linked incentive (PLI) scheme to make advance chemistry cell battery to attract investments of ₹45,000 crore.
The EV prices are expected to reach price parity with Internal Combustion Engine (ICE) vehicles before 2025. India plans to reduce EV prices by leveraging scale, as was seen in a recent tender wherein Mahindra Electric Mobility, TVS Motor Co., Kinetic Green Energy and Power Solutions, Etrio, Mali and Keto Motors Pvt. Ltd emerged as lowest bidders for an estimated ₹3,000 crore state-run Convergence Energy Services Ltd’s (CESL) tender to procure 100,000 electric three-wheeled vehicles.
This comes in the backdrop of the union government exploring a plan wherein all central government ministries and their field offices would completely migrate to EVs in next three years as reported by Mint earlier.