Features of NEMMP and FAME

Features of NEMMP and FAME

Question - Development and conservation go hand in hand when there is emphasis on eco-friendly vehicles as a means of transport. Discuss the Faster Adoption and Manufacturing of Hybrid and Electric vehicles (FAME) under the aegis of the National Mission for Electric Mobility in this context.

The central government has launched the Faster Adoption and Manufacturing of Hybrid and Electric vehicles/FAME scheme under the National Mission for Electric Mobility

• This scheme is for boosting sales of eco-friendly vehicles in the nation

• This scheme involves the provision of INR 795 crore support till the year 2020 for the manufacture as well as sale of electric and hybrid vehicles

Features of Faster Adoption and Manufacturing of Hybrid and Electric vehicles (FAME)

• This scheme involves provision of demand incentives to electric as well as hybrid vehicles ranging from buses to two wheelers in the cost bracket of INR 1800 to 66 lakh

• The key focus of the scheme is on the development of technology, demand creation, pilot projects and enhancement of charging infrastructure

• Based on the technology, scooters and motorcycles which are operated via batteries will be able to demand incentives from INR 1800 to 29,000

• For three wheelers, the incentives will range from INR 13,000 to 1.38 lakh rupees

• Incentives are from INR 17,000 to 1.87 lakh rupees for Light Commercial Vehciles/LCV; for buses, the incentive ranges from INR 34 to 66 lakh

• The nodal department for this scheme is the Department of Heavy Industries

Features of National Electric Mobility Mission Plan 2020

• The National Electric Mobility Mission Plan 2020 has been launched in 2013

• This plan aims to attain national fuel security through promotion of sale of hybrid and electric vehicles in the nation

• The plan has a target of attaining 6 to 7 million sales of hybrid and electric vehicles 2020 onwards

• This plan provides fiscal and monetary incentives to jumpstart nascent technology

• The cumulative sale of such vehicles is aimed to reach 15 to 16 million with the aid of the government

• The plan will also save 9500 million litres of crude oil saving a sum of INR 62000 crore

• The Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME India) was launched under NEMMP 2020 in the Union Budget for 2015-16 with an initial outlay of INR 75 crore

• The FAME scheme will ensure that electric and hybrid vehicles will replace conventional vehicles there by reducing liquid fuel consumption in the nation from the automobile sector

Facts and Stats

• There will be phase wise implementation of the scheme with fund allocation of INR 260 crore and 535 crore for the first 2 years

• Funds will be used for the technology platform (including testing infrastructure) demand incentives, pilot projects, operations and charging infrastructure

• Scheme will be implemented over 2 years between 2015-2016 and 2016-2017; the review of the implementation of the scheme will be conducted in the first phase following March 31st, 2017

• Data available shows that around 42000 electric vehicles were sold in 2012-2013 and around 20000 hybrid and electric vehicles were sold in 2013-2014

• During the year 2012-2013, the major percentage of electric vehicles sold were electric low speed scooters

• This scheme envisages boosting momentum for hybrid and electric vehicles under all vehicular segments including 2W, 3W, 4W, LCV and Buses