Fame II Scheme to Focus on Electrification of Public, Shared Transport

Minister of Heavy Industries and Public Enterprises, Mr Arvind Ganpat Sawant apprised the house that the government has, after having consultations with all stakeholders including Industry and Industry Associations, Department of Heavy Industry, finalized to support the electrification of the public modes of transportation through FAME II scheme.

“This phase will mainly focus on supporting the electrification of public & shared transportation, and aims to support through subsidies 7000 e-Buses, 5 lakh e-3 Wheelers, 55000 e-4 Wheeler Passenger Cars and 10 lakh e-2 Wheelers. In addition, the creation of charging infrastructure will be supported in selected cities and along major highways to address range anxiety among users of electric vehicles,” the public statement said.

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The first phase of FAME India was launched for two years on April 1, 2015 and was later extended till March 31. According to the official statement, About 2.78 lakh electric and hybrid vehicles (xEVs) were supported with a total demand incentive of Rs 343 crore. Besides, 465 buses were sanctioned to various cities and states.

On asked about the length-based classification of vehicles, the minister in his written reply affirmed and said, “length-based classification of vehicles is applicable to decide GST on vehicles. Lower GST is applicable to smaller vehicles and higher GST rate is applicable to larger vehicles with a view to the reduction in vehicular congestion.”

He further clarified: “Similarly, through CAFÉ norms, CO2 emission is being regulated through which companies are being directed to reduce CO2 emissions on each model manufactured by them, to align with an overall vision of Government in the reduction of Green House gas emissions.”

The Union minister told the house that so far, five automobile manufacturers have registered to avail benefits of the scheme. The plan has been designed to enhance national fuel security, provide affordable and environmentally-friendly transportation and enable the Indian automotive industry to achieve global manufacturing leadership, the minister added.