FAME 2: Cabinet Approved 10000 Crore for EV Market

FAME 2 is the second phase of FAME (Fast Adoption and Manufacturing of Electric Vehicle) which was implemented in Indian On April 1, 2019. There is a huge talk going on about the FAME 2 because of the fact that the government has approved Rs 10000 Crore of the budget for this phase.

The scheme mainly focuses on encouraging people to switch to electric vehicles instead of petrol/diesel vehicles by giving subsidies to the people while buying an electric vehicle. The government had planned to implement FAME 2 for a period of Three years, From 2019 to 2022. They also offer exemption in road tax and registration charge for hybrid and EVs.

The FAME 2 also planed to share the budget for Purchasing of 10lakh e-2W, 5lakh e-3W, 55000 4Ws and 7000 buses. The FAME 2 subsidies can be availed only for vehicle which are powered by lithium ion battery or more efficient energy source.

They have also planned to use the budget for development and installation on EV charging stations in all the major cities of India. These charging stations will be operated for both commercial and public transport vehicles. They will be installed on both sides of the highway for every 25km.

The subsidy for the EVs will be decided based on the capacity of the battery, which is Rs10000 per kWh for taxies and Rs 20000 per kWh for buses. The subsidy for Electric car could be around Rs 1.5 lakh and for the Two wheelers it might be around Rs The most important fact is, for electric buses the subsidy could be nearly Rs 60lakh.

The government had implemented this scheme aiming towards a long future. People need to switch to electric vehicles for the safety of the environment. But the cost of electric vehicle is too much for the for the Indians so this scheme can help the people to switch to eco friendly vehicle with help of the government.