FAME II to spur new tech – says Venu

FAME II to spur new tech – says Venu

Subject : Government Schemes

Context : TVS Motor Company Limited’s Joint Managing Director Sudarshan Venu on Saturday welcomed the revision of FAME II subsidies for electric two-wheelers, and said the move would give a fillip to both increased adoption and technology development.

Concept :

• With an aim to promote eco-friendly vehicles, the government had launched the FAME India scheme (Faster Adoption and Manufacturing of (Strong) Hybrid and Electric Vehicles in India) in 2015.
• The second phase of FAME India Scheme focuses on supporting electrification of public and shared transportation and aims to support electrification through subsidies for electric vehicles, including buses, passenger cars and two-wheelers.
• FAME-II will cost Rs 10,000 crore over 3 years till 2022 and intends to provide incentives to the manufacturers of electric and hybrid vehicles.
• Out of total budgetary support, about 86 percent of fund has been allocated for Demand Incentive so as to create demand for xEVs in the country.
• The incentives for electric vehicles will help increase penetration and lead to the indigenous development of future electric technology.
• It also motivates to establish the necessary charging Infrastructure for electric vehicles.