FAME India Scheme – Faster Adoption & Manufacturing of (Hybrid) and Electric Vehicles in India
India, in environmentalists’ circles is known for its high dependence on oil imports of around 80% from foreign countries. Consequently, along with China, it has also faced pressure – fair or unfair – from the global community to reduce carbon emissions resulting from the excessive use of fossil fuels. In fact, this over-dependence on the import of fossil fuel also costs the economy dearly in terms of loss of foreign exchange reserves.
The government of India unveiled a vision document on National Electric Mobility Mission Plan 2020, in 2013. In 2015, Prime Minister Modi recognising these problems took an early start and launched FAME India Mission in order to check problems on all three fronts i.e. dependence on oil import, loss of FOREX and CO2 emission.
This scheme aims at building and nurturing an electric vehicle manufacturing ecosystem which includes subsidising purchase of electric vehicles and supporting private organisations dealing with the manufacturing of these vehicles.
Rising Electric Vehicle Market
As per the data of Society of Manufacturers of Electric Vehicle (SMEV), the number of electric vehicles sold for the year 2015-2016 stood at 22,000 and this figure further rose to 25000 for 2016-2017. Gujrat topped the list with other states like Maharashtra, Uttar Pradesh and Rajasthan making it to top 5 for the highest number of electric vehicles sold.
With the government pushing the agenda of electric mobility, private sector is also showing great interest in collaborating with government to achieve this objective.
As per a report by The Grant Thornton, “some of the global automotive players like Tesla Inc. and Toyota Motor Corp. have shown interest in the Indian EV market. Nissan also plans to bring its bestselling electric vehicle Leaf to India. Suzuki Motor Corp. announced that it would form a joint venture with Denso Corp. and Toshiba Corp. to produce lithium-ion batteries for EVs in India with an initial capital expenditure of USD 184 million. Large Indian corporates like BHEL, PGCIL and Vedanta Group have shown interest in making EVs, setting up charging stations and developing storage solutions respectively.”
Phase I of Fame India was a pilot project. Prime Minister Narendra Modi, noticing huge interest among all the stakeholders like manufacturers, buyers and infrastructure facilitators for electric vehicles, is set to launch the phase II of FAME India soon with much greater expenditure outlay to effectively harness the potential of the e-mobility market in India. Addressing India’s first Global Mobility Summit 2018 – ‘MOVE’, Prime Minister said: Our renewable energy push will ensure that the environmental benefits of electric mobility can be fully realized. It is interesting to note at this junction that India aims to harness 175 GW of energy from renewable sources, primarily from solar and wind, by 2022 which is yet another vision of prime minister Narendra Modi. India’s adoption of electric mobility will further add to the reduction in carbon emissions which it will gain from such a large share of clean energy in its energy mix.