2018-04-16
Government extends FAME India scheme for third time

With the government yet to freeze the contours of and allocate resources to implement phase two of the FAME (Faster Adoption & Manufacturing go Hybrid and Electric Vehicles) India Scheme, the Department of Heavy Industries extended for an additional six months phase one of the programme to promote purchase and usage of green vehicles.

This is the third time that the phase one of the FAME India Scheme has been extended. The extension of the scheme will deemed to have come into effect from April 1, 2018, and will be valid until Sep 30, 2018.

The Ministry of Heavy Industries & Public Enterprises in a notification said, “…the period of the FAME India Scheme is further extended for a further period of six months i.e. up to 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.”

Phase I of the FAME-India Scheme was launched for a two-year period between April 1, 2015, and March 31, 2017, at an approved outlay of Rs 795 crore. The scheme was subsequently extended for six months till September 30, 2017, and then again till March 31, 2018.

As per the scheme, depending on technology, battery operated scooters and motorcycles are eligible for incentives ranging between Rs 1800 and Rs 29000, three-wheeler for incentives in the range of Rs 3300 and Rs 61,000. In four-wheelers, the incentives range from Rs 13,000 to Rs 1.38 lakh, in light commercial vehicles it is from Rs 17,000 to Rs 1.87 lakh, and for buses, it is from Rs 34 lakh to Rs 66 lakh.

FAME-India is part of the National Electric Mobility Mission Plan (NEMMP), which was launched by the erstwhile government in 2015. Under the NEMMP scheme, the government was to invest up to Rs 14000 crore in creating infrastructure and promoting the use of environment-friendly electric vehicles.

The industry was to pitch in the extra Rs 10000 crore required to develop products and create a manufacturing ecosystem. The scheme has four focus areas -- technology development, demand creation, pilot projects and charging infrastructure for building awareness and increasing utilization of eco-friendly vehicles.

The National Electric Mobility Mission Plan (NEMMP) 2020 projects sales of six-seven million units of electric vehicles and a resultant fossil fuel saving of 2.2-2.5 million tonnes. This will also result in substantial lowering of vehicular emissions and decrease in carbon dioxide emissions by up to 1.5% by 2020.

India first offered tangible support to the electric vehicle industry at the end of 2010, with the new and renewable energy ministry announcing an Rs 95-crore incentive scheme for manufacturers. Import duty on batteries was cut to 4% from 26%. Price rebates of up to 20% were offered, subject to a maximum of Rs 1 lakh for an electric car.

Source- The Economic Times