Electric and Hybrid Cars – FAME, National Electric Mobility Mission, etc.

Govt drops the idea of an India EV policy


Mains Paper 2: Governance | Government policies & interventions for development in various sectors & issues arising out of their design & implementation

From UPSC perspective, the following things are important:

Prelims level: FAME scheme, NITI aayog

Mains level: Prospects of adoption of EV technology in India

No need for any India EV policy now

  1. The government has decided against formulating an electric vehicle (EV) policy
  2. This is a remarkable volte-face, given that as recently as last month, the policy was awaiting approval from the union cabinet
  3. The government’s ambitious plan was to shift to electric vehicles by 2030

Industry demand

  1. The existing FAME (incentive) scheme should continue for another two years
  2. Electric vehicles should continue to be taxed at the current level

Benefits of switching to EV

  1. A NITI Aayog report said that adoption of electric and shared vehicles could help India save $60 billion in diesel and petrol, along with cutting down as much as 1 gigatonne of carbon emissions by 2030


FAME scheme

  1. Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India Scheme was launched  with the objective to support hybrid/electric vehicles market development and Manufacturing eco-system
  2. The FAME India was launched in 2015 under the National Electric Mobility Mission
  3. It is being administered by the Heavy Industries Ministry
  4. The scheme has 4 focus areas i.e. Technology development, Demand Creation, Pilot Projects and Charging Infrastructure
  5. The FAME India Scheme is aimed at incentivising all vehicle segments i.e. 2 Wheeler, 3 Wheeler Auto, Passenger 4 Wheeler Vehicle, Light Commercial Vehicles and Buses
  6. The scheme covers Hybrid & Electric technologies like Mild Hybrid, Strong Hybrid, Plug in Hybrid & Battery Electric Vehicles
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