Cabinet approves FAME II scheme for electric vehicles

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The Union cabinet chaired by Prime Minister Narendra Modi has approved the implementation of Faster Adoption and Manufacturing of Electric Vehicles in India Phase II (FAME India Phase II) scheme for promotion of electric mobility in the country.

The scheme with total outlay of Rs 10,000 crore over three years from 2019-20 to 2021-22 will be implemented with effect from April 1, 2019. It is the expanded version of the present FAME India 1 Scheme that was launched on April 1, 2015 with total outlay of Rs 895 crore.

Focus on incentives, charging infrastructure

The main objective of the scheme is to encourage faster adoption of electric and hybrid vehicle by way of offering upfront incentive on purchase of electric vehicles and also by establishing the necessary charging infrastructure for electric vehicles. The emphasis is on electrification of the public transportation that includes shared transport.

The scheme will support 10 lakh electric two-wheelers, 5 lakh electric three-wheelers, 55,000 four-wheelers and 7,000 buses.

Demand incentives on operational expenditure mode for electric buses will be delivered through state/city transport corporations.

In three-wheelers and four-wheelers segment, incentives will be applicable mainly to vehicles used for public transport or registered for commercial purposes.

In electric two-wheelers segment, the focus will be on private vehicles.

To encourage advance technologies, the benefits of incentives will be extended to only those vehicles which are fitted with Lithium-ion or other advanced technology batteries.

Under the scheme, about 2700 charging stations will be established in metros, other million plus cities, smart cities and cities of Hilly states across the country so that at least one charging station is available in a grid of 3 km x 3 km.

Charging stations are also proposed on major highways connecting major city clusters. On such highways, charging stations will be established on both sides of the road at an interval of about 25 km each.