Two things are happening at a dramatic speed to make the
nation a lot greener, especially the capital city of New Delhi. On the one hand,
the National Green Tribunal has banned diesel vehicles more than 10 years old
in the city and petrol vehicles that are more than 15 years old. In short, it
means after the ten and fifteen years respectively are over for these vehicles,
their fitness will not be renewed and they would be shunted out of the city.
On the other hand, the government has formally launched a
scheme that provides direct subsidies to the consumer for buying such vehicles
ranging from Rs 1800 to Rs 29,000 for two wheelers and Rs 13,000 to Rs 1.38
lakh for cars.
A corpus of Rs 795 crore has been set aside for the scheme –
Faster Adoption and manufacturing of Hybrid and Electric Vehicles (FAME). A
major portion of this amount (around Rs 500 crore) will be spent to subsidise
the electric vehicles, wherein the vehicles come cheap to the consumer and the
manufacturer is reimbursed by the government to the extent of the subsidy.
Motown India magazine had broken the story as early as
February 27, 2015. The story can be read by clicking the following link:
The FAME scheme was launched by the Department of Heavy
Industry (DHI) of the Government of India, in association with the Society of
Indian Automobile Manufacturers (SIAM) in New Delhi. It was announced by AnantGeete,
Minister of Heavy Industries and Public Enterprises of India at an event attended by senior government and
SIAM officials. Rajan Katoch, Additional Secretary and Financial Advisor S.K
Bahri and Additional Secretary Heavy Industry Sharma were present on the
Society of Manufacturers of Electric Vehicles (SMEV)
Director Sohinder Gill, who is also the CEO Hero Electric lauded the FAME India
scheme that envisages to provide Rs 795 crore support till 2020 towards
promoting Electric Vehicles and supporting charging infrastructure and R&D
investments. “With the launch of the scheme, many of the major automotive
players would start launching electric and hybrid vehicles. The existing
manufacturers of electric scooters like Hero Electric, Yo bikes, Lohia and Ampere
and Reva electric cars will particularly benefit from this scheme as they
already have vehicles in the showrooms and have started passing on the 100pc
incentives benefit to the customers from April 1. Few pilot projects like
Hybrid buses in Mumbai, Pizza deliveries on electric scooters, electric two
wheeled taxis as a pick and drop from Metro train stations are in the final
stages of approvals and may also be implemented in next 4 to 6 months to
showcase the scheme,” Gill said in a statement.
“As a member of the Project Implementation and Sanctioning
Committee of ‘FAME’, SMEV would ensure that only genuine manufacturers having
good quality products and definite plans of indigenisation get the benefits”,
National Mission for
Electric Mobility & FAME India
The Government of
India approved the National Mission for Electric Mobility in 2011 and
subsequently National Electric Mobility Mission Plan 2020 was unveiled (in
2013) by the then Prime Minister. As part of the Mission, DHI formulated the
scheme namely FAME – India. The scheme intends to achieve national fuel
security, globally competitive xEV (hybrid & electric vehicle) eco-system
and affordable environment friendly transportation for the future. The scheme
encompasses four major thrust areas, namely- demand& supply creation,
technology development, charging infrastructure and pilot projects.
As per the Mission,
the overall scheme proposed to be implemented over a period of 6 years, till
2020, aims at xEV sale of 6-7 million units per year, wherein it is intended to
support the xEV market development and its manufacturing eco-system to achieve
self-sustenance at the end of the stipulated period. The initial 2 year phase I
of the scheme kicked off this month with the onset of the new financial year and
shall last till the end of the financial Year 2016-17 with an approved outlay
of Rs 795 Cr. Initial allocation of Rs 75 Crore is sanctioned in the budget for
the current FY (FY 2015-16)
Commenting on the
scheme, AnantGeete said, “Keeping in view the limited domestic reserves of the
conventional fuels and the rising demand in the automobile sector, it is a dire
necessity to find alternate sources of energy for transport which are
eco-friendly yet cost-effective. In the present circumstances, the Faster Adoption
and Manufacturing of (hybrid &) Electric vehicles Scheme is a necessity. We
hope that the scheme shall be a success and benefits the citizens of our
country and meet the objectives which are set out in the Mission. Today, the
first national workshop organized by our Ministry also saw various stakeholders
including our partners from the State governments participating with full fervour;
we are hopeful that as one of important stakeholders we will have their active
participation in the implementation of the scheme as we go forward. I must say
“Team India” will work for this nationally important scheme and make our
He said that the involvement of state government and local
bodies will be crucial in the successful roll out of pilot projects and public
charging infrastructure for which the Central Government shall provide adequate
funds in the initial years.
Governments around the world are promoting these evolving
alternate technology vehicles including countries such as USA, EU (including
France, Germany, Norway, Sweden, The Netherlands), Japan and China. Across the
globe, the major focus is on market creation through various forms of
incentives, particularly demand side incentives.
If executed as per the plan, the scheme would result in a
substantial decrease in carbon dioxide emissions by 24 million tonnes, fuel
savings up to 9,500 million litres (valued at Rs 60,000 cr.) and creation of
approximately 3 lakh jobs by 2020. This shall result in a major boost to the
country’s overall economy and particularly “Make in India Initiative”.
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