Presentation On FAME (1) as per gtu .pptx

Electric vehicle

1. The FAME India Scheme is a government subsidy scheme under the  National Electric Mobility Mission Plan (NEMMP) . FAME stands for Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India. It is a government-backed scheme. It aims to promote the adoption of electric vehicles in India. The scheme was launched in 2015 and has two phases: FAME India Phase I and FAME India Phase II. central policy on faster adoption and manufacturing of electric vehicles in india (FAME)

2. What is the FAME India Scheme? FAME India, which stands for Faster Adoption and Manufacturing of Electric Vehicles in India, was introduced in the Union Budget 2015-16 to promote electric transportation. It's a part of the National Electric Mobility Mission Plan (NEMMP) - 2020. Phase 1 of FAME India was launched on April 1, 2015, and operated until March 31, 2019, with a budget of Rs . 895 Crore. FAME 2, the second phase, started in April 2019 and will continue until March 31, 2024, with a budget of Rs . 10,000 Crore. The scheme aims to incentivize the purchase of electric vehicles by offering financial subsidies to buyers. Subsidies are available for Electric 2 Wheelers, Electric 3 Wheelers, Electric 4 Wheelers, Electric Buses, and charging stations. The scheme focuses on four main areas: technological development, generating demand, piloting projects, and building charging infrastructure.

3. Background of Fame India Scheme The FAME India Scheme, which stands for Faster Adoption and Manufacturing of Electric Vehicles in India, was introduced in the Union Budget 2015-16. It was established to promote the adoption of electric vehicles and contribute to a cleaner and more sustainable transportation system in India. FAME India is a critical component of the National Electric Mobility Mission Plan (NEMMP) - 2020, aimed at reducing vehicular emissions and dependence on fossil fuels. The scheme is administered by the Department of Heavy Industry.FAME 2 seeks to further encourage the adoption of electric vehicles by providing financial incentives to both buyers and manufacturers. It also focuses on developing charging infrastructure and promoting research and development in the electric mobility sector.

4. Objectives of FAME India Scheme The objectives of the FAME India Scheme are – To accelerate the adoption of electric vehicles by lessening the initial investment. To encourage electric vehicle manufacturers, suppliers, and related providers to produce a greater number of electric automobiles in the country. To reduce the country’s vehicular emissions and bring down the levels of air pollution. To develop electric charging infrastructure across the country. To convert 30% of overall transportation to electric vehicles by 2030.

5. Features of FAME India Scheme Features of Phase I Phase I of the scheme was launched to achieve national fuel security with the help of the promotion of hybrid and electric vehicles (EVs) in the country. It was functional from 2015 to 2019. The budget outlay for Phase I was Rs 895 Crore. Phase I of the scheme supported 2.8 lakh with demand incentives. There were 425 electric and hybrid buses deployed across the country. There were about 520 Charging Stations and Infrastructure sanctioned in four years

6. Features of Phase 2 FAME India scheme Phase II was launched after the successful outcomes of Phase I for the faster proliferation of EVs by cutting down the upfront investment costs. It will be functional from April 2019 to March 2024 for five years. Initially, it was launched for 3 years but later extended to two more years. The budget outlay for Phase II is increased to Rs 10,000 Crore. Under Phase II of the scheme, the following incentives will be granted – Demand incentive of Rs 15,000/KWh with a maximum cap of 40% of the cost of two-wheeler vehicles. Demand incentive of Rs 20,000/KWh for electric buses. Demand incentive of Rs 10,000/KWh for the remaining category of vehicles. In addition, Phase II will promote the integration of renewable energy sources with charging infrastructure by interlinking. Charging stations will be established in metro cities, smart cities, hilly and mountainous states, and million-plus population cities across the whole country.

7. How does the FAME India Scheme work? FAME India scheme will work through the following vertical given below – Demand Incentive Administration of the Scheme, which includes Information, education, and awareness activities. Setting up charging stations Eligibility Criteria for Demand Incentives Demand incentive is the direct subsidy that is provided to the buyer for the generation demand for EVs. The eligible category of vehicles is – Electric buses, e-Four Wheeler, and e-Three Wheelers, including e-rickshaws, e-carts, and e-Two Wheeler. All eligible vehicles under the FAME India Scheme should be registered under the Central Motor Vehicles Rules, 1989. The subsidy to an individual will be provided on only one vehicle of a particular category.

8. Working Suppose the XYZ two-wheeler Electric vehicle is available at an ex-showroom price of Rs 1,30,200 in Mumbai. After the subsidy under FAME India Scheme, it will be available at ₹ 1,15,200. The original equipment manufacturer(OEM) will claim this subsidy from the Department of Heavy Industry. The OEM has to fulfill minimum technical eligibility criteria related to the performance and efficiency of vehicles.

9. Benefits of FAME India Scheme The benefits of the FAME India Scheme are as follows –
Environmental pollution will be significantly reduced because of the reduction of vehicular emissions.
By implementing such schemes, India will achieve the target of net zero emission of carbon before 2070.
The electric charging infrastructure will be set up across the country.
The citizens will avail of the incentives on the purchase of electric vehicles for personal use.
The dependence on oil imports will reduce the current account deficit and, hence the capital expenditure.
It will provide eco-friendly public transportation for citizens.

10. References: https://testbook.com/ias-preparation/fame-india-scheme https://static.pib.gov.in