Government Earmarks INR 10,000 Crore Under FAME II Announcement

  • 3rd, Mar 2019 12:46 PM
  • Resham Aswani
  • View: 453
  • 0 badnormalgoodbetterbest

The government of India has a groundbreaking investment plan of around Rs 10,000 in FAME ll (Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles India scheme.

The government first trailed with FAME l by allocating Rs 795 crore for two years from 2015 to 2017 (under FAME I) but it kept extending and will finally get over on March 31, 2019.

As a consequence, the Indian hatchback industry is waiting fascinatedly for the broadcast of the second phase of FAME that is billed to quit cold turkey of vehicles and kick-start adoption of green vehicles.

Read Also:- Government Set To Surge FAME-II Scheme Funds

For FAME ll government has assigned Rs 10,000 crore for a period of three years starting from April 2019 which means around Rs 3,300 will be prorated to each year.

Fame ll is backed by many discussions at a high level that buttress battery-swapping technology for electric vehicles in India which can travel longer distances with a smaller energy efficient battery pack.

For example, a vehicle with a small battery driving 120km per charge will attract more subsidy as compared to a vehicle travelling the same distance with a hefty battery.
As a matter of fact, Chetan Maini-backed Sun Mobility has already given a demo of its battery-swapping technology for electric buses and three-wheelers.

Read Also:- BS VI Emission Norms May Raise Price of Diesel Cars in 2020

The government is expected to add EV-charging infrastructure in the country, which will turn travelling into the eco-friendly and user-friendly ride by dealing with the user’s concern with range.

This move will raise a kinesthesia of contention among OEMs to build higher energy-economical vehicles.

As far as new vehicle registrations are concerned, the government will focus more on adoption of electric three-wheelers, followed by two-wheelers and passenger vehicles which may result in the 50 % registration of electric three-wheelers, 25 % two-wheelers and 10 % passenger vehicles by 2023.