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What is FAME phase 2 scheme?

FAME scheme was launched under the National Mobility Mission Plan in 2015 in a phased manner. FAME – I was implementable during 2015-19 and now FAME – II will be implemented during 2019-22. The main objective of FAME –II is to encourage faster adoption of e-vehicles through demand creation and incentives one-vehicle.

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The focus of e-vehicle –

  • Market creation
  • Manufacturing technology
  • Charging infrastructure
  • Indigenization providing incentives
  • For e-vehicle adoption

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The key features of this scheme include –

  • Electrification of public transport (3 wheeler, 4 wheeler) while in 2W focus is on private vehicles.
  • Encouraging new technology and incentives on a vehicle with lithium on battery.
  • Development of charging points across the country with at least one point in 3km × 3km. E.g. especially highways, metropolitan cities.
  • Creating acceptability of e-vehicles by providing incentives.
  • Investment for manufacturing and establishing a charging station. For instance – OMC’s (oil marketing companies) will be given preference.

The adoption of electric vehicles is very beneficial for India as –

  • Environment degradation is very high. Forex –World’s top 14 polluted cities are in India.
  • Shifting to e-vehicle reduces the need for traditional fossil fuel thus reducing oil import. For ex – India set a target to cut oil import by 10% by 2022.
  • The manufacturing sector will get a major thrust. For ex –MAKE INDIA
  • India’s commitment to climate change (INDC) can also be achieved.
  • Employment generation as the creation of industries and infrastructure will provide a job.
  • Reducing air pollution and thus improving quality of life.

Way forward

  • Shifting to renewable energy. For instance – India have high solar resource. The solar power generated during the day can be stored in batteries.
  • Creating affordability and accessibility of e-vehicles.
  • Awareness among the citizens
  • Intense research and development

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