Subsidies Current Affairs

Government withdraws subsidy to mild hybrid vehicles under FAME scheme

The Union Ministry of Heavy Industries and Public Enterprises has withdrawn subsidy given to mild hybrid vehicles under FAME India (Faster Adoption and Manufacturing of Hybrid and Electric vehicles in India) scheme.

 Earlier, mild hybrid, strong hybrid, plug-in hybrid and pure electric vehicles were given incentives under the FAME India scheme.

What is mild hybrid vehicle?
  • A mild hybrid vehicle has an electric motor, which on its own cannot run a vehicle but assists normal engine by using recovered energy stored in a battery and helps save fuel
  • It uses the energy generated while applying the brakes and turns it into electric energy which is then stored in a battery. This energy can then be used to turn the starter motor when the car’s start stop system needs it.
  • Mild-hybrids are 7-15% more fuel efficient as compared to conventional hybrid systems that can run on pure electric power for short distances too.

About FAME India Scheme 

  • The FAME India scheme was launched in 2015 under National Electric Mobility Mission Plan (NEMMP) with an aim to promote eco-friendly vehicles in the country.
  • It objectives is to provide fiscal and monetary incentives for adoption and market creation of both hybrid and electric technologies vehicles in the country.
  • It will also 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.
  • It is being administered by the Heavy Industries Ministry. It will provide demand incentives to electric and hybrid vehicles from two-wheeler to buses.

National Electric Mobility Mission Plan (NEMMP) 2020: It aims to achieve national fuel security by promoting hybrid and electric vehicles in the country. It has set ambitious target of 6-7 million sales of hybrid and electric vehicles year on year from 2020 onwards.

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Union Government notifies Aadhaar Act, 2016

The Union Government has notified the Aadhaar (Targeted Delivery of Financial and other Subsidies, benefits and services) Act, 2016.

The Act will provide statutory backing for transfer of subsidies and benefits to eligible people having Aadhaar (UID) number.

Key facts

  • Aadhaar Act seeks to provide efficient, transparent and targeted delivery of subsidies, benefits and services to individuals residing in India by assigning them unique identity numbers (UID) or Aadhaar number.
  • It will be used for all benefit that will be linked to consolidated fund of India or the expenditure incurred from it.
  • Both central and state government can use Aadhaar for disbursal for benefits and subsidies. However the Aadhaar number cannot be used as a proof of citizenship or domicile.
  • The Act gives statutory for establishment of the Unique Identification Authority of India consisting of a Chairperson (part time or full time) and two Members (part time).
  • Those individuals not having Aadhaar number shall be offered alternate and viable means of identification for delivery of the subsidies, benefits or service.

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