Fame scheme modified
The union government has modified India’s ambitious scheme to promote electric mobility and allotted the electric three-wheelers and electric buses component of the marquee Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (Fame) scheme to state run Energy Efficiency Services Ltd (EESL).
- The scheme failed to take off, with only 5%, or ₹492 crore, of the ₹10,000 crore allocated under its second phase spent till March. The budgetary allocation of ₹10,000 crore is for three years to 31 March 2022, with the scheme administered by the department of heavy industries (DHI).
- Electric vehicles (EVs) are costlier than traditional vehicles with internal combustion engines (ICE). The money under Fame-2 is to be spent to subsidize 500,000 electric three-wheelers, 1 million electric two-wheelers, 55,000 electric passenger vehicles and 7,090 electric buses.
- The ministry of heavy industries and public enterprises modified the second phase of the Fame scheme that began from 1 April 2019.
- EESL is a joint venture of NTPC Ltd, Rural Electrification Corp. Ltd, Power Finance Corp. Ltd and Power Grid Corp. of India Ltd.
- The Fame scheme’s first phase began on 1 April 2015 and was extended till 31 March 2019.
- The second phase is to support the electrification of public and shared transportation and help create charging infrastructure.