Connect with us

Auto

Ministry of Heavy Industries planning to expand number of EVs on road with the help of government provided subsidy

In its year-end review 2023, the Ministry of Heavy Industries (MHI) stated that the Department of Expenditure (DoE) has reviewed and accepted the request to increase the outlay of the FAME II plan from Rs 10,000 crore to Rs 11,500 crore, taking into account its objectives.

Aditya Kaushik

Published

on

fame II buses
Advertisement

New Delhi: Under the second phase of the Faster Adoption and Manufacturing of Electric Vehicles (FAME II) plan, the Union government has provided subsidies of Rs 5,228 crore to encourage the sale of 11,53,079 electric vehicles (EVs).

With a budget of Rs 10,000 crore spread over five years, starting on April 1, 2019, the FAME II scheme aimed to encourage the electrification of shared and public transportation by offering subsidies for 10,000 electric two-wheelers, 5,000 electric three-wheelers, 5,000 electric buses, and 5,000 electric cars. The FAME II plan also provides help for the establishment of charging infrastructure.

In its year-end review 2023, the Ministry of Heavy Industries (MHI) stated that the Department of Expenditure (DoE) has reviewed and accepted the request to increase the outlay of the FAME II plan from Rs 10,000 crore to Rs 11,500 crore, taking into account its objectives.

Ministry of Heavy Industries road map

According to MHI, they are planning to increase the number of electric buses on the field with the help of the subsidy of Rs 5,288 crores provided to them by the government.

Under the FAME II initiative, supply orders for 3,390 electric buses against authorized quantities have been placed by a number of state transport undertakings, city transport undertakings, and municipal corporations. As of right now, 3,037 of the 3,390 electric buses are in service.

Furthermore, under NITI Aayog’s aggregation approach, Convergence Energy Services Ltd (CESL) is handling the case for an additional 3,472 electric buses. 454 of the 3,472 electric buses have been put into service.

Fame II

Consequently, MHI stated that a total of 6,862 electric buses (3,390 units + 3,472 units) will eventually be deployed in various states under the FAME II initiative.

According to MHI, 148 EV public charging stations have already been put into service.

On March 28, 2023, MHI declared that the PSU oil marketing companies, Indian Oil, Bharat Petroleum, and Hindustan Petroleum, will get Rs 800 crore under the FAME II initiative to establish 7,432 public fast charging stations throughout the nation.

Advertisement
Advertisement
Advertisement