FAME scheme extended till 2024
Government has decided to extend adoption of electric vehicles ‘Faster Adoption and Manufacturing of Electric Vehicles in India Phase II (FAME Phase II)’ by 2 years.
- Initially FAME scheme was to be implemented for a period of three years from April 1, 2019.
- Now, it will be in force till March 31, 2024.
- Date was extended after the Department of Heavy Industries increased demand incentive for electric two-wheelers (e2W) from Rs 10,000/KWh to Rs 15,000/KWh.
These amendments were made in the scheme because it faced criticism for being ineffective in lifting share of EVs in Indian market. As per data, only 5 per cent or about Rs 500 crore of allocated Rs 10,000 crores has been spent to make green mobility affordable. Only 58,613 e2Ws were sold under the scheme across states against the target of 10 lakh units by March 2022. With the latest amendment, EV industry will get more time to extend benefits to customers and achieve target under scheme.
This scheme is a part of National Electric Mobility Mission Plan. Scheme was launched to encourage electric vehicles by providing subsidies. This scheme aims to incentivise all vehicle segments. It was launched in two phases. Phase 1 was started in 2015 & ended on 31st March, 2019. While, phase II was started from April 2019 and will end in 2024 (Earlier to end in 2022). Scheme is monitored by Department of Heavy Industries under Ministry of Heavy Industries and Public Enterprises.
National Electric Mobility Mission Plan (NEMMP)
Under the NEMMP, government targeted to achieve 6-7 million sales of electric and hybrid vehicles across India by 2020. This plan aims to achieve national fuel security by promoting hybrid and electric vehicles.
Month: Current Affairs - June, 2021
Category: Economy & Banking Current Affairs
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