Modifications in FAME II Scheme
Part of: GS Prelims and GS III – Economy
- Department of Heavy Industry (DHI) has recently modified FAME II scheme.
- Objective of the modification: To drive adoption of electric vehicles
- Introduction of a demand incentive of Rs. 15,000 per kWh for electric two wheelers with a maximum cap at 40% of the vehicles’ cost.
- Launch of an aggregate demand for 300,000 electric three- wheelers by Energy Efficiency Services Limited.
- It was launched in 2015
- It forms a part of National Electric Mobility Mission Plan 2020.
- It aims to promote manufacturing of electric and hybrid vehicle technology and to ensure sustainable growth of the same
- Phase 2 of the scheme was approved for a period of three years starting from first April 2019
- It aims to generate demand by way of supporting e-buses, e 2-wheelers, e three- wheelers
- By selling over 75,000 vehicles FAME has so far resulted in savings of over 20 million litres of fuel and has led to almost 40 million kg reduction in CO2.