zzdcar
Home
/
Reviews
/
Special reports
/
FAME 2 highlights – How is it beneficial?
FAME 2 highlights – How is it beneficial?-May 2024
2023-12-14 EST 02:30:21

FAME 2 highlights

  Exterior

The Indian Government has been undertaking various measures to boost electric car sales in the country. Earlier this year, the government approved a budget of Rs 10,000 crore for the second phase of FAME (Faster Adoption and Manufacturing of Electric vehicles) which has been implemented in the country from 1 April 2019. The subsidy on EVs is applicable to commercial vehicles, public transport vehicles and two-wheelers. The FAME 2 scheme is applicable for a period of three years from 2019 to 2022.

Moreover, the centre has sanctioned a budget of Rs 8,596 crore this year as compared to Rs 4,500 crore which was announced in 2018. Under the FAME 2 scheme, only vehicles which are powered by lithium-ion batteries or a more advanced power source can avail the government benefits. The scheme reportedly supports the manufacturing and sale of 10 lakh electric two-wheelers, five lakh electric three-wheelers, 55,000 electric four-wheelers and 7000 electric buses. As part of EV charging infrastructure plans, around 2,700 charging stations will be set up across different locations in Tier-1 cities. The plan is to ensure availability of at least one charging station in a grid of 3kms x 3kms. The establishment of charging stations are also proposed on major highways connecting major city clusters. On such highways, charging stations will be established on both sides of the road at an interval of about 25 km each.

In an effort to ensure clarity in process, the centre has asked states to frame their EV policy and provide additional fiscal and non-fiscal incentives to manufacturers and buyers. Under the scheme, buses have to be priced under Rs 2 crore, plug-in hybrids under Rs 15 lakh, three-wheelers under Rs 5 lakh and two-wheelers have to be under Rs 1.5 lakh to be eligible for incentives.

Initially, in August last year an inter-ministerial panel had finalised the roadmap for Faster Adoption and Manufacturing of (Hybrid) and Electric Vehicles (FAME) II scheme with an outlay of around Rs 5,500 crore spanning over five years and subsidy support for all types of electric vehicles. However, l in November 2018 the government had extended the phase-I FAME scheme till March 2019 or till the release of a notification for the second phase. The Ministry of Finance had approved enhancement of the total outlay for the first phase of the scheme from Rs 795 crore to Rs 895 crore. The scheme was supposed to be implemented over a two-year period commencing from April 1, 2015. It was to be followed by the rollout of the second phase. The first phase was extended four times for six months each.

Speaking on the occasion, Sohinder Gill, Director General, Society of Manufacturers of Electric Vehicles (SMEV) said, “We are thankful to the government for considering our demand for a long-term scheme with substantial fund support. The support would encourage associated industry players to invest in the sector, which will further help in creating an ecosystem, locally. We look forward to seeing the final notification from the concerned ministry, which will give us clarity on the government’s roadmap of e-mobility.”

Comments
Welcome to zzdcar comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Special reports
How to manage a car loan - Tips and tricks
How to manage a car loan - Tips and tricks
How to manage a car loan - Tips and tricksYou have decided to buy a car and have come to the conclusion that you will need a car loan to do so. But the myriad of options are confusing and you have hit a roadblock. Here are some tips and...
May 4, 2025
CarWale Gyan: Types of transmissions
CarWale Gyan: Types of transmissions
IntroductionIf you've driven vehicles or have read about them, you would've come across a term transmission. But, what does it exactly means? Well, simply put, a transmission or a gearbox is a mechanical machine that controls power generated from a vehicle's engine/powertrain and transmits it to the wheels, as and...
May 4, 2025
How to get the best fuel efficiency from a manual car
How to get the best fuel efficiency from a manual car
IntroductionWith a country obsessed with the fuel efficiency of their car, we surely are always on a lookout to extract that extra kilometre from every drop of fuel we feed our engines. But seldom do we realise, the fuel efficiency of any car is dependent on a plethora of factors....
May 4, 2025
Temasek, Warburg Pincus and March Capital invest  Rs 325 crore into CarTrade
Temasek, Warburg Pincus and March Capital invest Rs 325 crore into CarTrade
HighlightsThe CarTrade Group, India’s largest online automotive group, has raised Rs 325 crore from investors Temasek, Warburg Pincus and March Capital Partners. It plans to use these funds for its expansion into the auto finance space and to invest into companies in the automotive space. Commenting on the fund raise, Mr....
May 4, 2025
Types of car loans - New car loan, used car loan and loan against car
Types of car loans - New car loan, used car loan and loan against car
Types of car loansCar loans can make buying that dream car, whether it be a necessity or for leisure, way simpler. Rather than paying up a rather large amount of money up front, which could take years of savings, car loans can help you get the car you want/dream immediately...
May 4, 2025
How to drive a manual transmission car?
How to drive a manual transmission car?
IntroductionIndia has predominantly been a manual-car market, but with the influx of automatic transmissions, the 'art of driving a manual car' might be in jeopardy. Nonetheless, owning and driving a manual car is still a dream for many. However, it’s one thing to drive a car and another one to learn...
May 4, 2025
Copyright 2023-2025 - www.zzdcar.com All Rights Reserved