National Electric Mobility Mission Plan 2020 - An Overview

The National Electric Mobility Mission Plan (NEMMP) 2020 was launched by the Government of India in 2013 to achieve national fuel security by promoting electric and hybrid vehicles. This article outlines the objectives of the scheme and the focus areas of the FAME India Scheme.

Aspirants would find this article very helpful while preparing for the IAS Exam.

FAME Scheme – Objectives

The target is to achieve sales of 6 – 7 million in the hybrid and electric vehicles sector from 2020. The government will provide fiscal and monetary incentives for this industry. The expectation is that crude oil worth Rs.62000 crore will be saved due to this.

FAME India – Important Points

  1. Under the NEMMP, the government has launched the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME India) scheme.
  2. This scheme had an initial outlay of Rs. 75 crore.
  3. This scheme is expected to provide a major thrust towards the early adoption of electric and hybrid technologies.
  4. The government hopes that such vehicles will become the first and natural choice of consumers thereby slowly replacing conventional vehicles, thus helping India inch towards a pollution-free environment.
  5. The government envisions that by 2020, early market development via demand incentive, domestic production, and in-house technology development will help this industry reach self-sufficient economies of scale.
  6. In 2012-13, around 42000 electric vehicles and close to 20000 hybrid vehicles were sold in India. Most of the electric vehicles were low-speed scooters. It is expected that with the government push for this sector, the market can be extended for 2 Wheeler, 3 Wheeler, 4 Wheeler, LCVs, and buses.
  7. The government has plans to incentivize buyers to buy hybrid and electric vehicles by offering monetary support. The incentive will be disbursed through an electronic mechanism or portal. Under this scheme, the producer of the vehicle will reduce the price of the vehicle while selling to the consumer and the same amount will be reimbursed to the manufacturer by the government.
  8. The latest update on the scheme: To boost electric mobility, the government aims to support through subsidies about 62,000 electric passenger cars and buses, besides 15 lakh electric three- and two-wheelers, Parliament was informed on February 11, 2021.

FAME India – 4 Main Focus Areas

  1. Technology development
  2. Demand creation
  3. Pilot projects
  4. Charging infrastructure

The above details would help candidates prepare for UPSC 2021.

Frequently Asked Questions about NEMMP

How successful was the FAME Scheme?

As per provisions of the Scheme, Electoral Bonds may be purchased by a person (as defined in item No. 2 (d) of Gazette Notification), who is a citizen of India or incorporated or established in India. A person being an individual can buy Electoral Bonds, either singly or jointly with other individuals.

What is FAME subsidy?

The revised FAME II scheme offers 50% more subsidy at ₹15,000 per kWh on electric bikes and scooters in India. The government has originally introduced the FAME II scheme in 2019. New FAME II subsidy is aimed at promoting faster adoption and manufacturing of electric vehicles in India.

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