[Burning Issue] Hybrid Electric Vehicles & Fame Scheme

Hybrid Electric Vehicles

  1. Conventional cars use an internal combustion engine for power.
  2. Battery electric vehicles only use an electric motor and battery, eschewing conventional engines altogether.
  3. Hybrid cars have the advantage of both of above type of vehicle. They have, in addition to the internal combustion engine, also an electric motor and a battery.
  4. If we had better batteries with greater power storage capacity, we would need hybrid cars.
  5. The most advanced hybrids have larger batteries and can recharge their batteries from an outlet. These are known as “plug-in hybrids” and can cover long distances.

BENEFITS

  1. Fuel Efficiency: It greatly increases fuel efficiency by increasing mileage, turning off combustion engine while driving at lower speeds and when the car is stopped, battery provides power for air conditioning.
  2. While accelerating or at higher speeds, combustion engine can be used, thus not compromising with the power of vehicles.
  3. Global Warming: Will cut down emissions of global warming pollutants by a 1/3 to 1/2.
  4. It will greatly reduce dependence on fossil fuels.
  5. The later model may cut down these emissions even further.

FAME India – Hybrid and Electric vehicles scheme

  1. Union Government on 1 April 2015 launched Faster Adoption and Manufacturing of Hybrid and Electric vehicles (FAME) – India Scheme
  2. The scheme was launched as part of the National Mission for Electric Mobility to boost eco-friendly vehicles sales in the country

Key facts

  1. Objective: To support the hybrid or electric vehicles market development and its manufacturing eco-system in the country in order to achieve self-sustenance in stipulated period
  2. The overall scheme is proposed to be implemented over a period next 6 years i.e. till 2020
  3. It envisages providing Rs 795 crore support till 2020 for the manufacturing and sale of electric and hybrid vehicles
  4. It also seeks to provide demand incentives to electric and hybrid vehicles from two-wheeler to buses
  5. Implementation: It will be implemented in phases
  • The Phase-1 will be implemented over a two year period in FY15-16 and FY16-17
  • Based on the outcome and experience from the Phase-1, it will be reviewed for implementation after 31 March 2017
  • Then appropriate fund will be allocated for future.
  1. Four focus areas: Technology development, Pilot Projects, Demand Creation and Charging Infrastructure.
  2. The Department of Heavy Industries under the aegis of Union Ministry of Heavy Industries will be will be nodal department for the scheme

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Challenges

  • Funding constraints
    1. The automobile industry is already under a fund crunch due to BS VI fuel norms and banks spooked of NPAs.
  • Market demand
    1. Owing to their higher prices, electric vehicles will not have a very large market in India.
  • Charging Infra
    1. At present, the charging infrastructure is hugely lacking in the country.
    2. Unreliable power is another worry that concerns buyers.
  • High cost of batteries
    1. Batteries for electric vehicles are 40-50% more expensive than regular ones.
  • Disposal of batteries
    1. In the absence of safe disposal options, the used batteries will be a curse on the environment.

Way forward

  1. Many multilateral financial institutions like Soft Bank of Japan provide cheaper loans for eco-friendly projects. Tap these.
  2. Better charging facilities, efficient electric transmission infrastructure and integration of renewable energy into electricity grid would be a sustainable option for addressing infrastructure deficit.
  3. Encourage local manufacturing through a positive policy environment.
  4. Increasing Public awareness as there is a direct correlation between knowledge of electric vehicles and its adoption.
  5. Battery Swapping, as recommended by NITI Aayog, could significantly reduce the cost of EV and would save the precious charging time.
  6. Batteries in EVs can be a viable option for storing power generated under National Solar Mission [100 GW solar energy by 2022].
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Arun Pratap Singh Yadav
Arun Pratap Singh Yadav
5 years ago

Important current issue raised! Thanks for providing.

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