As part of the National Electric Mobility Mission Plan (NEMMP) 2020, there is an ambitious goal of reaching 6 to 7 million sales of hybrid and electric vehicles by 2020, said a latest press release from the Ministry of Heavy industries and public enterprises. The NEMMP 2020 is a national mission document providing the vision and roadmap for the faster adoption of electric vehicles and their manufacture in the country. This plan was designed to improve national fuel security, to provide affordable and environmentally friendly transportation, and to enable India’s auto industry to achieve global manufacturing leadership.
As part of NEMMP 2020, the Ministry of Heavy Industry has formulated a program viz. Fame India (FAME India) Adoption and Faster Manufacturing (Hybrid and) Electric Vehicle Manufacturing Program in 2015 to promote the manufacture of electric and hybrid vehicle technologies and ensure their sustainable growth. Phase I of this program was initially launched for a period of 2 years, starting on April 1, 2015, which was then extended from time to time and the last extension was authorized until March 31, 2019. The 1st phase of the FAME India program was implemented through four areas of intervention, namely (i) demand creation, (ii) technology platform, (iii) pilot project and (iv) recharge. Market creation through on-demand incentives was aimed at inducing all vehicle segments i.e. 2-wheeled vehicles, 3-wheeled vehicles, 4-wheeled passenger vehicles, light commercial vehicles and buses.
The demand incentive was available to buyers of electric and hybrid (xEV) vehicles in the form of an initial reduced purchase price to allow for wider adoption. In addition, grants were awarded for specific projects under the Pilot Projects, R & D / Technological Development and Public Charging Infrastructure components of the program. In the 1st phase of the program, around 2.78 lakh xEV was taken care of with total demand incentives of Rs. 343 crore [Approx]. In addition, 465 buses were sanctioned to various cities / states under this program.
Based on the experience gained in phase I of the FAME India program, it was observed that a sufficient number of recharging infrastructure is needed to achieve the expected outcome of the plan, which is currently being addressed in phase II of the FAME program. The Ministry of Heavy Industry notified Phase II of the program with Cabinet approval with an expenditure of Rs. 10,000 crore for a period of 3 years from April 1, 2019. The main objective of the program is to ” Encourage faster adoption of electric and hybrid vehicles by providing an initial incentive to purchase electric vehicles and establishing the necessary charging infrastructure for electric vehicles.
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