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EESL to play a bigger role as govt modifies Fame scheme

the scheme has failed to take off, with only  ₹492 crore of the  ₹10,000 crore allocated under its second phase spent till March. Photo: Aniruddha Chowdhury/MintPremium
the scheme has failed to take off, with only 492 crore of the 10,000 crore allocated under its second phase spent till March. Photo: Aniruddha Chowdhury/Mint

The Union government has modified its ambitious scheme to promote electric mobility by allotting the electric three-wheelers and buses component of the marquee Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (Fame) scheme to state-run Energy Efficiency Services Ltd (EESL)

The Union government has modified its ambitious scheme to promote electric mobility by allotting the electric three-wheelers and buses component of the marquee Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (Fame) scheme to state-run Energy Efficiency Services Ltd (EESL).

As reported by Mint on Friday, the scheme has failed to take off, with only 492 crore of the 10,000 crore allocated under its second phase spent till March. The budgetary allocation is for three years to 31 March 2022, with the scheme administered by the department of heavy industries.

Electric vehicles are costlier than traditional vehicles with internal combustion engines. The money under Fame II is to be spent to subsidize 500,000 three-wheelers, 1 million two-wheelers, 55,000 passenger vehicles and 7,090 buses.

According to a corrigendum published in the Gazette of India on Friday, the ministry of heavy industries and public enterprises modified Fame II, which began on 1 April 2019.

Fame I began on 1 April 2015 and was extended till 31 March 2019. Fame II is to support the electrification of public and shared transportation and help create charging infra.

“Many experts had suggested that more ministries and institutions may be brought into Fame II," said a person aware of the development requesting anonymity.

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