Second phase of fame to electrify public transport

Note4students

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

From UPSC perspective, the following things are important:

Prelims level: FAME Scheme

Mains level:  Issues related to the (possible) early adoption of the EVs in India.

News

• The second phase of the Faster Adoption and Manufacturing of (hybrid) Electric vehicles (FAME) scheme will come into force from April 1, 2019 with the Union Cabinet nod.
• The scheme will be in effect for a period of three years at a proposed budget of Rs 10,000 crore.

FAME India II Scheme

• The scheme is the expanded version of the present scheme titled ‘FAME India 1’ which was launched in April 2015.
• The phase two of the scheme plans to support ten lakhs electric two-wheelers, five lakhs electric three-wheelers, 55 thousands four-wheelers and 7,000 buses.
• The main objective is to encourage faster adoption of EVs by way of offering upfront incentive on the purchase and also by way of establishing a necessary charging Infrastructure.
• The largely increased allocation for the new phase is a sign of the critical importance that India’s policy makers are currently placing on shifting to an all-electric Indian mobility sector.

Focus areas

• In this phase two, emphasis is on electrification of the public transportation that includes shared transport.
• The second phase will also not provide any incentive for passenger cars used for personal use.
• In the two-wheelers segment, however, the focus will be on the private vehicles.
• Demand Incentives on operational expenditure mode for electric buses will be delivered through State/city transport corporation (STUs).
• In 3W and 4W segment incentives will be applicable mainly to vehicles used for public transport or registered for commercial purposes.
• To encourage advanced technologies, the benefits of incentives will be extended to only those vehicles which are fitted with advanced batteries like a Lithium Ion.

Necessary charging infrastructure

• It also proposes for establishment of charging infrastructure, whereby about 2700 charging stations will be established in metros, other million-plus cities, smart cities and cities of hilly states across the country.
• It will ensure availability of at least one charging station in a grid of 3 km x 3 km.

Impact

• Inclusion of buses, taxi and e-rickshaws under Fame 2 will play a critical role to promote EVs.
• The transition to electric buses is expected to not only help reduce carbon footprint but also save fuel.