Ministry of Heavy Industries and Public Enterprises amends Fame regime

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NEW DELHI : The Union Government has amended India’s ambitious program to promote electric mobility and awarded the electric three-wheeler and electric bus component of the renowned Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (Fame) program to State-run Energy Efficiency Services Ltd (EESL). .

TBEN reported on Friday that the program had failed to take off, with only 5%, or 492 crore, from the 10,000 crore allocated under its second phase spent until March. The budget allocation of 10,000 crore is for three years until March 31, 2022, with the plan administered by the Department of Heavy Industries (DHI).

Electric vehicles (EVs) are more expensive than traditional internal combustion engine (ICE) vehicles. Fame-2 money is to be spent to subsidize 500,000 electric three-wheelers, 1 million electric two-wheelers, 55,000 electric passenger vehicles and 7,090 electric buses.

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According to a corrigendum published in the India Gazette on Friday, the Ministry of Heavy Industries and State-Owned Enterprises amended the second phase of the Fame program which began on April 1, 2019.

“Aggregation will be the key method to bring the initial cost of 3W EV to an affordable level and on par with the 3-Wheeler ICEs. EESL will consolidate the demand for 3 lakh Electric 3 Wheelers for several user segments. Details will be worked out by EESL for implementation, ”the Gazette notice said.

EESL is a joint venture of NTPC Ltd, Rural Electrification Corp. Ltd, Power Finance Corp. Ltd and Power Grid Corp. of India Ltd.

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“For electric buses, more than 4 million cities (Mumbai, Delhi, Bangalore, Hyderabad, Ahmedabad, Chennai, Kolkata, Surat and Pune) will be targeted. EESL will go for the aggregation of demand in these 9 cities for the remaining electric buses under the program on an OPEX basis, ”added the Gazette notification.

As of March of this year, only 2.4%, or 12,129, of targeted electric three-wheelers and 4.3%, or 43,184, of targeted electric two-wheelers had received Fame-2 grants. . In addition, of the 7,090 electric buses to be subsidized under the program, 6,265 were sanctioned in the States. Among these, supply orders were issued for 3,118 buses by the public transport services (until May 31).

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The first phase of the Fame program began on April 1, 2015 and was extended until March 31, 2019. The second phase consists of supporting the electrification of public and shared transport and contributing to the creation of charging infrastructure.

“Many experts have suggested that more ministries and institutions could be included in the FAME II program,” said one person familiar with the developments, requesting anonymity.

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