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.
- 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.
- 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.
- 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.