- On 3rd January, 2020, in a bid to push electric vehicle (EV) adoption in the country, the government approved the setting of 2636 charging stations in 62 cities across 24 States/UTs under FAME India (Faster Adoption and Manufacturing of Electric Vehicles in India) scheme phase II.
- Out of these 2636 charging stations, 1633 Charging Stations will be Fast Charging Stations and 1003 will be slow charging stations. With this, about 14000 Charging Stations will be installed across the selected cities.
About FAME Scheme-II
- Launched in March, 2019,under National Electric Mobility Mission (NEMM), FAME-II aims to boost electric mobility and increase the number of EVs in commercial fleets, with an outlay of Rs. 10,000 Crore for a period of 3 years commencing from 1st April 2019.
- The scheme is being implemented through the following verticals:
- Demand Incentives
- Establishment of networks of Charging Stations
- Administration of Scheme including publicity, IEC (Information, Education and Communication) activities.
- This phase mainly focuses on supporting electrification of public and shared transportation, and aims to support (through incentives) about 7000 e-buses, 500,000 electric three-wheelers (e-3W), 55,000 electric four-wheeler (e-4W) passenger cars and one million electric two-wheelers (e-2W).
- Out of total budgetary support, about 86 percent of fund has been allocated for Demand Incentive so as to create demand for EVs in the country.
- To encourage faster adoption of electric and hybrid vehicles by way of offering upfront incentive on purchase of Electric Vehicles (EV) and by way of establishing necessary charging infrastructure for EV.
- Electrification of Public Transport: The emphasis will be on electrification of public transport that includes shared transport like 3- wheelers and buses and the demand incentives on operational expenditure mode for electric buses will be delivered through state/city transport corporations (STUs).
- Incentives to Public & Private Vehicles: In three-wheeler and four wheeler segments, incentives will be applicable mainly on vehicles used for public transport or registered commercial purposes. In the two-wheeler segment, the focus will be on private vehicles.
- Advancement of Lithium-ion Batteries: In order to encourage advance technologies, the benefits of the incentives will be extended to only those vehicles, which are fitted with advanced battery like lithium-ion battery and other new technology batteries.
National Electric Mobility Mission Plan (NEMMP)
- Pollution Control: Adoption of EVs in the country will help in addressing the issue of air pollution, due to the indiscriminate use of fossil fuels.
- Sustainable Use of Fossil Fuels: The scheme will provide fuel security as it helps to lessen the dependency on fossil fuels there by paving the path of sustainable and efficient use of fossil fuels.
- Holistic Approach: It presents a more holistic approach as it not only touches upon critical technical issues such as battery cost & efficiency, charging infrastructure, etc. but also stresses upon the indigenization of the entire EV value chain.
Challenges Driving India’s Electric Mobility Initiatives
Rising Crude Oil Imports - An Energy Security Challenge
Rising Pollution Levels – An Environmental Challenge
Rising Population – A Sustainable Mobility Challenge
Recent Government’s Efforts to Promote Electric Mobility
- Tax initiatives to promote fully electric vehicles:
- GST reduction on Fuel cell vehicles: 28% to 18%
- GST reduction on Li-ion battery: 28% to 12%
- Hybrid vehicles have been kept in the same category as luxurycars and will be taxed at the peak rate of 28% plus a cess of 15%.
- Ministry of Power has allowed sale of electricity as ‘service’ for charging of electric vehicles. This would provide a huge incentive to attract investments into charging infrastructure.
- Ministry of Road Transport Highways issued notification regarding exemption of permit in case of battery operated vehicles.
- In March, 2019, the government launched the National Mission on Transformative Mobility and Battery Storage to promote clean, connected, shared, sustainable and holistic mobility initiatives.