FAME II Current Affairs - 2019
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NITI Aayog together with Rocky Mountain Institute (RMI) has released a report titled “India’s Electric Mobility Transformation: Progress to Date and Future Opportunities”. The report analyses the opportunities for the automobile sector and government under the Faster Adoption and Manufacturing of Electric Vehicles II (FAME II) scheme.
Highlights of the Report
- Benefits of FAME II will go beyond the vehicles that are eligible under the FAME II.
- There would be considerable energy and CO2savings associated with two-, three-, and four-wheelers and buses covered by FAME II over their lifetime, as well as the potential savings associated with greater adoption levels by 2030.
- The electric buses covered under FAME II will account for 3.8 billion vehicle kilometres travelled over their lifetime.
- In order to capture the opportunity potential in 2030, batteries must remain a key focal point since they will continue to be the key cost driver of EVs.
- Vehicles eligible under FAME II scheme can cumulatively save 5.4 million tonnes of oil equivalent over their lifetime worth Rs 17.2 thousand crores.
- Electric Vehicles sold through 2030 could cumulatively save 474 million tonnes of oil equivalent (Mtoe) worth Rs 15 lakh crore and generate net CO2 savings of 846 million tonnes over their operational lifetime.
- India needs active participation from the auto industry to ease electric mobility transition. The auto and battery industries could collaborate to enhance customer awareness, promote domestic manufacturing, promote new business models, conduct R&D for EVs and components, consider new business models to promote EVs
- The government must focus on a phased manufacturing plan to promote EVs, provide fiscal and non-fiscal incentives for phased manufacturing of EVs and batteries. Different government departments can consider a bouquet of potential policies, such as congestion pricing, ZEV credits, low emission/exclusion zones and parking policies among others to drive adoption of EVs.
- India’s electric vehicle market is poised for growth with a blend of policies, such as FAME II, and the automotive industry’s willingness to provide new mobility solutions to the citizens of the country. Such a transformation will create enormous economic, social and environmental benefits for the citizens of India.
The report reasserts optimism for India to achieve mass-scale EV adoption that will translate to a massive reduction in oil imports and CO2 emissions.
Tags: FAME II • Faster Adoption and Manufacturing of Electric Vehicles II scheme • Niti Aayog • RMI • Rocky Mountain Institute
The Cabinet Committee on Economic Affairs (CCEA) has approved Rs 10,000 crore package over three years till 2022 for the second phase of Faster Adoption & Manufacturing of Electric (and hybrid) vehicles (FAME) scheme.
FAME II Scheme
- The FAME scheme is aimed at encouraging faster adoption of Electric and hybrid vehicle by way of offering an upfront incentive on the purchase of Electric vehicles and also by way of establishing a necessary charging Infrastructure for electric vehicles.
- FAME II emphasizes on electrification of the public transportation that includes shared transport.
- The Scheme would provide incentives on operational expenditure model for electric buses which will be delivered through State/city transport corporation (STUs).
- In the 3-wheeler and 4-wheeler segment incentives will be applicable mainly to vehicles used for public transport or registered for commercial purposes.
- In the 2-wheeler segment, the focus would be on private vehicles.
- The Scheme aims to support 10 Lakhs e-2W, 5 Lakhs e-3W, 55000 4Ws and 7000 Buses.
- The benefit of incentives will be extended for only those vehicles which are fitted with an advanced battery like a Lithium-Ion battery and other new technology batteries.
- The Scheme also proposes for the establishment of charging infrastructure, whereby about 2700 charging stations will be established across the country so that there is an availability of at least one charging station in a grid of 3 km x 3 km.
FAME-II is the expanded version of the present scheme titled FAME India 1 which was launched on 1st April 2015.