India Accelerates EV Revolution with INR 10,000 Cr FAME India Phase II Scheme
Primarily geared towards advancing the electrification of public and shared transportation, the scheme aims to incentivize the adoption of EVs.
December 06, 2023. By Abha Rustagi
The Minister of State for Heavy Industries, Krishan Pal Gurjar, shared this comprehensive update in a written reply in Lok Sabha.
Primarily geared towards advancing the electrification of public and shared transportation, the scheme aims to incentivize the adoption of EVs, including 7,090 e-Buses, 500,000 e-3 Wheelers, 55,000 e-4 Wheeler Passenger Cars, and 1 million e-2 Wheelers. The comprehensive plan also includes substantial support for the creation of charging infrastructure.
Under the second phase of the FAME India Scheme, a substantial subsidy of INR 5,228 crore has been disbursed to EV manufacturers, contributing to the sale of an impressive 1,153,079 electric vehicles by December 1, 2023. The breakdown includes 1,016,887 2-wheelers, 121,374 3-wheelers, and 14,818 4-wheelers.
Further enhancing the electrification landscape, MHI has sanctioned 6,862 electric buses for intracity operations, with 3,487 already deployed to State Transport Undertakings (STUs) as of November 29. Notably, INR 800 crore has been allocated as a capital subsidy to three Oil Marketing Companies (OMCs) for the establishment of 7,432 EV public charging stations.
In a groundbreaking approach, FAME-India Scheme phase-II extends incentives not to EV manufacturers but directly to consumers. This takes the form of upfront reduced purchase prices for hybrid and electric vehicles, promoting wider adoption.
A total of 62 Original Equipment Manufacturers (OEMs) have registered as of November 29, 2023, to avail demand incentives, with claims amounting to INR 5,094 crore submitted, out of which INR 3,815 crore has already been disbursed.
While FAME India Scheme Phase-II does not include provisions for the manufacturing capacity of advanced chemistry cells, the government has separately approved the Production Linked Incentive (PLI) Scheme for 'Advanced Chemistry Cell (ACC) Battery Storage.'
With a budgetary outlay of INR 18,100 crore, the scheme aims to achieve a manufacturing capacity of 50 GWh, also covering 5 GWh of niche ACC technologies.
A robust monitoring mechanism, including compliance formulation and vehicle testing through Testing Agencies, has been adopted. The Inter-Ministerial Empowered Committee, 'Project Implementation and Sanctioning Committee (PISC),' headed by the Secretary (Heavy Industry), ensures the overall monitoring, sanctioning, and implementation of the scheme.
please contact: contact@energetica-india.net.
Aman Mehtani
Founder & Group CEO
ADM Group Offers Smart, Sustainable Solutions for Global Automotive Industry
Gaurav Dolwani
CEO
From Scrap to Sustainability: LICO Materials’ Circular Economy Approach
Gaurav Kumar
Head of Supply Chain and Manufacturing
Euler Motors Bridges Cost Gap Between EVs and ICE Vehicles with Localization
Shveta Arya
India Region Leader
Powering India’s Mobility Future: Cummins Showcases Advanced Power Solutions at Bharat Mobility
Samkit Shah
Co-Founder
Jitendra EV Leading Hybrid EV Revolution with Hydrix