What is FAME India Phase II?

 About FAME India Phase II

• Faster Adoption and Manufacturing of Electric Vehicles in India Phase II (FAME India Phase II) is a scheme for promotion of electric mobility in the country.
• It has an outlay of Rs. 10,000 Crore for a period of 3 years commencing from 1st April, 2019. The FAME India Phase II has been extended for a period of two years after 31st March, 2022.
• Implementing Agency: Department of Heavy Industry, Ministry of Heavy Industry and Public Enterprises.
• The main objective of the scheme is to encourage faster adoption of electric and hybrid vehicles by offering an upfront incentive on the purchase of electric vehicles and also by establishing a necessary charging infrastructure for electric vehicles.
• The scheme will help address the issue of environmental pollution and fuel security.
• This scheme is the expanded version of the scheme titled 'FAME India I, which was launched on 1st April, 2015, with a total outlay of Rs. 895 crores.
• Features of FAME India Phase II:
  • The emphasis is on the electrification of public transportation, which includes shared transport.
  • Demand incentives on the operational expenditure model for electric buses will be delivered through State/city transport corporation (STUs).
  • In the 3W and 4W segments, incentives will be applicable mainly to vehicles used for public transport or registered for commercial purposes.
  • In the e-2Ws segment, the focus will be on private vehicles.
  • Through the scheme, it is planned to support 10 Lakh e-2W, 5 Lakh e-3W, 55000 4Ws, and 7000 buses.
  • To encourage advanced technologies, the benefits of incentives will be extended to only those vehicles which are fitted with advanced batteries like lithium-ion batteries and other new technology batteries.
  • The scheme proposes the establishment of charging infrastructure, whereby about 2700 charging stations will be established in metros, other million-plus cities, smart cities, and cities of hilly states across the country so that there will be availability of at least one charging station in a grid of 3 km x 3 km.
  • Under the scheme of FAME-II, the demand incentive for e-2W has been increased to Rs. 15,000/KWh from Rs. 10,000/KWh, with an increase in cap from 20% to almost 40% of the cost of the vehicle to increase the adoption of e-2W.

Q1) What is a lithium-ion battery?

It is a type of rechargeable battery that uses lithium ions as the primary component in its electrochemical system. It is widely used in portable electronic devices, electric vehicles, and various energy storage applications. It is made up of an anode (a negative electrode), cathode (a positive electrode), separator, electrolyte, and two current collectors (positive and negative). The electrodes are typically made of materials that can intercalate lithium ions during charging and discharging cycles. Common cathode materials include lithium cobalt oxide (LiCoO2), lithium manganese oxide (LiMn2O4), and lithium iron phosphate (LiFePO4).

Source: Parliamentary panel recommends FAME-II scheme’s extension by at least 3 more years