FAME II Gets Rs 10,000 Crore Boost from Cabinet

FAME II Gets Rs 10,000 Crores Boost from Cabinet
FAME II Gets Rs 10,000 Crore Boost from Cabinet

The Cabinet Committee of Economic Affairs (CCEA) has given a boost to the government’s ambitious FAME project (Faster Adoption & Manufacturing of Electric (and hybrid) vehicles) by approving a Rs 10,000 crore package for the second phase of the policy over the next three years till March 2022. The government plans to support 10 lakh electric two-wheelers, 5 lakh electric three-wheelers, 55,000 electric four-wheelers and 7,000 buses under the new scheme. The government is also planning to support the move with 2,700 charging stations across diverse terrains with each located within 25 km of each other, which will also include fast chargers in certain pockets.

FAME II will have a precise focus on electrification of both shared and public transport and there will also be incentives for an operational expenditure model for e-buses by state transport corporations. Such incentives will only be applicable for three and four-wheelers plying as CVs and public transport, with the incentives applicable for private two-wheeler vehicles that use advanced battery packs made of lithium ion. Under phase 1, around 2,65,335 electric/hybrid vehicles were supported and the phase two will focus only on public transport rather than private car manufacturers.

The Department of Heavy Industries  recently had mentioned that the government proposes to give a push to electric vehicles in public transport and seeks to encourage adoption of EVs by way of market creation and demand aggregation through the second phase. It is looking at an OPEX model under public private partnership for accelerated adoption of EVs.