Faster Adoption and Manufacturing of Hybrid and Electric Vehicle (FAME) Scheme

Faster Adoption and Manufacturing of Hybrid and Electric Vehicle (FAME) Scheme

Executive Summary:

India has a growing market for electric vehicles. The Central and State governments have launched schemes to encourage the use of electric vehicles, and there are also rules and standards in force.

This article throws light on:

• • • Faster Adoption and Manufacturing of Hybrid and Electric Vehicle (FAME)scheme, Objectives of FAME scheme and challenges in Electric Vehicle adoption in India
    • Features of the Fame Scheme
    • Highlight on few important points in connection with India’s Phase-I and Phase -II policies.

Introduction:

In recent years, pollution from vehicle emissions has increased. The Fame Scheme was introduced in 2015 by the Central Government of India to curb the pollution caused by diesel and petrol vehicles. The use of electric vehicles is increasing rapidly in India during the past few years, but the industry remains far from being competitive with Internal Combustion Engines(ICE) vehicles. The Government set up the FAME scheme in 2015 with a $130 which provided subsidies for electric 2- and 3-wheelers, hybrid and e-cars and buses.

What Is Fame Scheme?

FAME Scheme is the Government of India’s initiative to reduce the use of diesel and petrol vehicles in the country.The Ministry of Heavy Industries and Public Enterprises introduced the Fame India scheme, which is a part of the Electric Mobility Mission Plan.

The Fame Scheme includes two phases. which are:

• Phase – I, offered grants and direct subsidies for particular projects in addition to funding for research & development, technology advancement and public charging infrastructure.
• Phase -II, which was launched in 2019 with a budgetary outlay of INR 10,000 crore, aimed to boost the growth of the Electric Vehicle (EV) ecosystem, EV-related infrastructure and large-scale EV adoption. The Phase II will now be extended by the Government to 31stMarch, 2024.

Objectives of FAME scheme:

• The scheme’s main goal is to lower the demand of fuel by replacing diesel/ petrol vehicles with electricity-powered vehicles.
• To set up sufficient charging stations for electric vehicles.
• To make these vehicles available to the general public at reasonable prices.
• Its target is to lower the level of air pollution and vehicle emissions in the country.

Features of the Fame Scheme:

Features of Phase I:

• The Government set up 427 charging stations during Phase I.
• The authorities implemented the first phase by focusing on four important areas which are:
  • Pilot Project
  • Charging Infrastructure
  • Demand Creation
  • Technology Platform

Features of Phase II:

• The electrification of public transportation and shared transportation are the main points of the second phase of the Fame Scheme.
• Approximately 7000 e-Buses, 5 lakh e-3 Wheelers, 55000 e-4 Wheeler Passenger Cars and 10 lakh e-2 Wheelers are planned to be supported through subsidies in this phase.
• Incentives in the 3-Wheel and 4-Wheel segments will mostly apply to cars registered for commercial use or used for public transportation.

Challenges in EV adoption in India:

Lack of an ecosystem and universal charger:
Many EV customers insisted about running into issues when charging their vehicles at different EV-making companies’ charging stations, which could have an impact on the growth of the EV industry.

Cost of EVs and batteries:
In India, there is no pricing similarity between ICE and electric vehicles. Electric vehicles are far more expensive than those powered by fuel sources. The governments also offered a lot of incentives. But a problem with all of the policies is that the incentives are only valid for a limited number of vehicles and that when the discount and incentives are removed, the same EV that looked like it would be a good investment suddenly becomes unaffordable.

There is no State or Central monitoring institution:
There are major funds given under the FAME Policy and multiple states have developed policies to support EV-related infrastructure, but no centralized or state institutions exist to track the results of this funding.

Lack of products:
If one wants to purchase a conventional fuel-powered car or two-wheeler, there are plenty of choices. In the EV segment, the situation is entirely different. There are not many options and the most of them are from untrusted brands.

Conclusion:

Fame scheme will significantly reduce environmental and fuel conservation-related problems. Accordingly, vehicles from various segments will benefit from subsidies. Citizens can utilize eco-friendly public transportation. We can conclude that the FAME India scheme takes some strong measures to encourage the adoption of electric vehicles, which would drastically change the world.

Regards,
Legal Team

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