Electric buses under FAME scheme sanctioned

Electric buses under FAME scheme sanctioned

Part of: GS Prelims and GS-II – Policies & GS-III – Climate change; Pollution

In news

• In a big push towards electric mobility, the Government has sanctioned 670 Electric buses in various states. 
• States: Maharashtra, Goa, Gujarat and Chandigarh and 241 Charging Stations in Madhya Pradesh, Tamil Nadu, Kerala, Gujarat and Port Blair under Phase-II of FAME India Scheme.

Important value additions

The FAME (Faster Adoption and Manufacture of (Hybrid and) Electric Vehicles) 

• Launched by: The Ministry of Heavy Industries and Public Enterprises in 2015 
• Objective: To incentivize the production and promotion of eco-friendly vehicles including electric vehicles and hybrid vehicles
• Two phases of the scheme: Phase I: started in 2015 and was completed on March 31st, 2019; (2) Phase II: started from April 1st, 2019, will be completed by March 31st, 2022.

FAME II Key Features 

• It proposes to give a push to electric vehicles (EVs) in public transport.
• It seeks to encourage adoption of EVs by way of market creation and demand aggregation.
• It envisages the holistic growth of EV industry, including providing for charging infrastructure, research and development of EV technologies and push towards greater indigenization. 
• The outlay of ₹10,000 crore has been made for three years till 2022 for FAME 2 scheme.  
• There is also provision for setting up of charging stations for electric vehicles in India.
• The plug-in hybrid vehicles and those with a sizeable lithium-ion battery and electric motor will also be included in the scheme.
• FAME 2 will offer incentives to manufacturers, who invest in developing electric vehicles and its components.
• Eligibility to get incentive: Only buses priced up to ₹2 crore, strong and plug-in hybrids under₹15 lakh, three-wheelers under ₹5 lakh and two-wheelers under ₹1.5 lakh.