Electric Vehicles and FAME Scheme – Steps taken to promote EVs – Challenges (Prelims, Mains GS3)
Electric Vehicles (EV) and FAME Scheme in India
Electric Vehicles and FAME Scheme
- The National Electric Mobility Mission Plan includes FAME India.
- FAME - Faster Adoption and Manufacturing of Electric Vehicles
- FAME's main goal is to encourage the use of electric vehicles by providing financial incentives.
- The FAME India Scheme aims to incentivize all types of vehicles.
- The scheme is divided into two phases:
- Phase I began in 2015 and concluded on March 31, 2019.
- Phase II: began in April 2019 and will be completed by March 31, 2022.
- Monitoring Authority: Department of Heavy Industries, the Ministry of Heavy Industries and Public Enterprises.
- Fame India Scheme has four focus Areas:
- Technology development
- Demand Creation
- Pilot Projects
- Charging Infrastructure
- The FAME Scheme aims to accelerate the adoption of electric and hybrid vehicles by providing an upfront incentive on electric vehicle purchases.
- Ensure that electric vehicles have the necessary charging infrastructure.
- To address the issues of pollution and fuel security in the environment.
Steps taken to promote EVs
- The global climate agenda established under the Paris Agreement to reduce carbon emissions in order to limit global warming is driving the push for electric vehicles.
- India is among a handful of countries that support the global EV 30@30 campaign, which aims for at least 30% new vehicle sales to be electric by 2030.
- The FAME II (Faster Adoption and Manufacturing of Electric Vehicles) programme has been updated.
- For the supplier side, there is a Production-Linked Incentive (PLI) scheme for Advanced Chemistry Cell (ACC).
- For manufacturers of electric vehicles, the recently launched PLI scheme for Auto and Automotive Components.
- In 2013, India unveiled the ‘National Electric Mobility Mission Plan (NEMMP) 2020’ to make a major shift to electric vehicles and to address the issues of national energy security, vehicular pollution, and growth of domestic manufacturing capabilities.
Challenges
- Battery Manufacturing- absence of a manufacturing base for batteries in India,
- Consumer Related Issues- Lack of charging stations, cost of a basic electric car is much higher than the average price of a car running on conventional fuel.
- Policy Challenges: Uncertainty in government policies regarding electric vehicle production deters investment in the sector.
- Lack of Technology and Skilled Labour
- Unavailability of Materials for Domestic Production
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