Context: The Department of Heavy Industry has approved the sanction of 5595 electric buses to 64 Cities, State Government Entities, State Transport Undertakings (STUs) for intra-city and intercity operation under FAME India scheme phase II in order to give a further push to clean mobility in public transportation.

What are the salient features of FAME 2 scheme?

Faster Adoption and Manufacturing of Hybrid and Electric Vehicles, or FAME 2 scheme aims to boost electric mobility and increase the number of electric vehicles in commercial fleets.

Target: The outlay of ?10,000 crore has been made for three years till 2022 for FAME 2 scheme.

The government will offer the incentives for electric buses, three-wheelers and four-wheelers to be used for commercial purposes.

Plug-in hybrid vehicles and those with a sizeable lithium-ion battery and electric motor will also be included in the scheme and fiscal support offered depending on the size of the battery.

How will FAME 2 scheme help improve charging infrastructure?

• The centre will invest in setting up charging stations, with the active participation of public sector units and private players.
• It has also been proposed to provide one slow-charging unit for every electric bus and one fast-charging station for 10 electric buses.
• Projects for charging infrastructure will include those needed to extend electrification for running vehicles such as pantograph charging and flash charging.
• FAME 2 will also encourage interlinking of renewable energy sources with charging infrastructure.

Background:

FAME India is a part of the National Electric Mobility Mission Plan. Main thrust of FAME is to encourage electric vehicles by providing subsidies. FAME focuses on 4 areas i.e. Technology development, Demand Creation, Pilot Projects and Charging Infrastructure.

Way ahead:

• India needs auto industry’s active participation 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.
• Government should 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, parking policies, etc. to drive adoption of EVs.