DHI EXTENDED THE PHASE-I OF THE FAME SCHEME TILL MARCH 2019

Source: TheNewsMinute

Department of Heavy Industry has finally extended the validity of Phase-I of FAME (Faster Adaptation of Manufacturing of Hybrid & Electric Vehicles in India) for a period of 6 months, i.e. upto 31 March 2019.

Earlier, it was anticipated that DHI will launched FAME-II with an outlay of INR 55 billion (US$ 900 million) spanning over five years and subsidy support for all types of electric vehicles. Download Notfication

This is little setback for electric mobility initiative in India. FAME-I helped to push procurement of electric buses in India. (Read: Electric Buses Procurement in India - Indian Cities got the viable rates)

Further, DHI announced two key changes in the existing policy, by discontinuing the incentive available to:

  1. Conventional Battery Vehicles w.e.f. 1st October 2018
  2. Vehicles not requiring registrations like battery two-wheelers etc.

FAME-I was successful to promote the use of electric buses in India. DHI issued an Expression of Interest (EoI) inviting proposals from million-plus cities and special category states for multi- modal transport on October 31, 2017. 44 cities submitted 47 proposals, out of which 11 cities were selected for pilot project for multi-modal electric public transport. 10 cities (except Delhi) floated the tenders for the procurement of electric buses and only 8 cities (excluding Ahmedabad and Jaipur) managed to finalise the tendering process before 31 March 2018.

DHI allocated 455 electric buses to selected cities and special category states and gave the final approval for the sanctioning of funds to these cities. Tata Motors will supply 240 electric buses to 5 cities, Goldstone-BYD will supply 120 buses to 2 cities.

Additionally, DHI also approved funding of 130 electric buses to Ahmedabad (50 buses), Himachal Pradesh (50 buses) and Navi Mumbai (30 buses). Ashok Leyland will supply buses to Ahmedabad, FOTON PMI is successful bidder in Himachal Pradesh and JBM Solaris is winner in Navi Mumbai. This is good measures as different manufacturers will be operating buses in different cities as it will allow to compare the technology.

However, some of the cities are looking for large scale of procurement of electric buses without FAME Subsidy. The following are the live or upcoming contract:

Uttar Pradesh – The government of Uttar Pradesh has issued a tender for the procurement of 520 electric buses for 7 cities in the state under Gross Cost Model.

Delhi – The government of Delhi has approved the procurement of 1,000 electric buses under Gross Cost. The government is currently preparing detailed project report for the procurement.

Karnataka – Bengaluru Metropolitan Transport Corporation (BMTC) is working on project for the procurement of 500 electric buses under Gross Cost Model.