The ministry of heavy industries said Rs 800 crore under FAME India scheme Phase-2 has been sanctioned to three PSU oil marketing companies (OMC) for setting up 7,432 public fast charging EV stations across the country.

The ministry has released Rs 560 crore or 70 per cent of the total amount to three OMCs — Indian Oil (IOCL), Bharat Petroleum (BPCL), and Hindustan Petroleum (HPCL) — as the first instalment for the installation and commissioning of upstream infrastructure and charging equipment of EV public charging stations at respective retail outlets in the country.

The installation is expected to be completed by March 2024.

At present, there are 6,586 charging stations across the country. 

The addition of the new 7,432 public charging stations will be a significant push to EV charging ecosystem. The charging capacity would be used for charging electric 2-wheelers, 4-wheelers, light commercial vehicles, and mini-buses.

FAME India scheme

• National Electric Mobility Mission Plan (NEMMP) 2020 was unveiled in 2013 with a target to achieve sales of 6-7 million electric/hybrid vehicles by 2020.

• As part of the mission, the department of heavy industry formulated a scheme — Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME India) to promote hybrid/electric technology in transportation so as to reduce dependence on fossil fuels. 

• The scheme is one of the most important green initiatives of the government of India, which will be one of the biggest contributors to reduction of pollution from the road transport sector.

• Phase-1 of the scheme was approved initially for a period of two years, commencing from April 1, 2015, with an outlay of Rs 795 crore. 

• It was intended to support the hybrid/electric vehicles market development and its manufacturing eco-system to achieve self-sustenance at the end of the stipulated period.

• The duration of phase-1 of the scheme was extended from time to time and the last extension was allowed up to March 31, 2019, with enhancement of total outlay to Rs 895 crore.

The scheme had four focus areas: 

1) Technology Development

2) Demand Creation

3) Pilot Project

4) Charging Infrastructure.

Achievements of Phase-1

• About 2.8 lakh electric/hybrid vehicles were incentivised with financial support of about Rs 360 crore.

• Projects worth Rs 158 crore sanctioned for technology development to various R&D and academic organisations/institutions through technology platforms for electric mobility along with the department of science and technology (DST).

• Sanctioned about Rs 361 crore for pilot projects including charging infrastructure projects. This includes sanction of 465 e-buses in 9 cities for Rs 301 crore.

Phase-2 of FAME India

• Based on the experience gained during phase-1 of FAME India scheme and suggestions of various stakeholders, the department of heavy industry notified phase-2 of the scheme on March 8, 2019, with the approval of Cabinet. 

• Phase-2 of the scheme commenced on April 1, 2019 with an outlay of Rs 10,000 crore.

Highlights of the scheme:

• The main objective of the scheme is to encourage faster adoption of electric and hybrid vehicles by way of offering upfront incentives on purchase of electric vehicles and also by establishing the necessary charging infrastructure for electric vehicles.

• Demand incentives on the operational expenditure model for electric buses will be delivered through state/city transport corporation (STUs).

• Only advanced battery and registered vehicles will be incentivised under the scheme.

• In three-wheeler and four-wheeler segments, incentives will be applicable mainly to vehicles used for public transport or registered for commercial purposes.

• In the electric two-wheelers segment, focus will be on private vehicles. 

• The scheme aims to create demand by way of supporting 7,000 e-buses, 5 lakh electric-three wheelers, 55,000 electric-four wheeler passenger cars and 10 lakh electric two-wheelers.

• The scheme also envisages support for setting up of adequate public charging infrastructure to instil confidence among EV users, through active participation and involvement of various stakeholders including government agencies, industries, and Public Sector Enterprises (PSEs). 

• The ministry of heavy industries had sanctioned about 520 charging stations/infrastructure for about Rs 43 crore under phase-1 of FAME India scheme. Further, a budget provision of Rs 1,000 crore has been earmarked for a period of five years (2019-20 to 2023-24) for establishment of charging infrastructure under phase-2 of FAME India scheme.

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