The Indian government launched the FAME scheme in phases with an outlay budget of ₹10,000 crores. This would be for a period of three years. Out of the total budget earmarked for the scheme, roughly 86% of the fund has been allocated for the Demand Incentive to create a demand for electric vehicles in the country.
What is FAME and why is there a need for it?
The Central Government of India, over the span of years, has paid attention to the increasing ills of pollution. With the overall Air Quality index dropping to alarming levels across several key cities in India, working towards ecological processes has become more important than ever before. To tackle the issue and bring about sustainable mobility practices, the government is laying emphasis on increasing incentives to promote e-mobility which will help reduce the levels of combustion in the cities and contribute to cleaner air.
The FAME India scheme phase 2 aims to work towards generating demand by supporting 7000 electric busses (e-bus), five lakh electric three-wheelers (e-3W), 55,000 electric four-wheeler passenger cars which also include strong hybrids, and roughly about 10 lakh electric two-wheelers.
Who are considered eligible for subsidies under the implementation of the FAME scheme phase 2?
Vehicles which are fitted with advanced chemical batteries and meet the minimum Technical criteria, and which are registered as “Motor vehicle” as per regulations set out by CMVR shall be eligible for incentive under the scheme.
This will lay added emphasis on providing affordable and environmentally friendly public transportation options for the masses, and the scheme will impact vehicles which are largely used public transportation, or those that are registered for commercial purposes in e-3W, e-4W and e-bug segments.
The portal for the FAME India scheme
With digitisation spreading across fields, the FAME portal was not going to be left behind for far too long. The FAME portal is currently active on the website given here: https://fame2.heavyindustry.gov.in/Index.aspx.
All the process life cycle of the scheme has been digitalised for public perusal on this online portal. At present, roughly about 38 original equipment manufacturer, 120 models of all category of vehicles are registered under this scheme.
Up until now, a total of 73,711 vehicles are sold with a total incentive amount of ₹213.46 crores. The larger impact of the implementation of the scheme is that an approximate total of 1,94,44.000 litres of fuel was saved from being burnt to push vehicles forward. This is called electrification of fuel which is useful for the environment in the long run.
Due to this, CO2 reduction in the environment stands to be massive.
Wrapping it up
Eco-friendly methods now need to be integrated across all walks of life. It is about time we get to terms with the reality of the global climate crisis and take active steps towards preserving the only planet we can call home