Second phase of fame to electrify public transport

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