FAME II (Faster Adoption and Manufacturing of Electric Vehicles in India) scheme are providing opportunities to introduce electric vehicles (EVs) in the automobile industry. The manufactures of the equipment are providing the customers with a subsidy so the customers will be able to buy it at a low price and later the manufactures can claim the amount from the Department of heavy industries (DHI).
FAME II will be encouraging in putting more light on EV. They have introduced more charging stations and reduced the cost of vehicles. The scheme will be available for 3 years only from April 1, 2019, to March 31, 2022. They have reduced the price of EV two-wheelers from Rs 10,000 per KWH to Rs 15,000 per kWh. Due to an increase in subsidy, there will be a change in the demand by the customer. There will be variations in the cost depending on the battery capacity, efficiency etc. FAME combined with other schemes like PLI will also benefit them in creating advanced chemistry cell (ACC) batteries. The introduction of ACC batteries can reduce the cost of batteries. The EV sector will be getting concession based on the PLI scheme because the scheme is being accepted by the auto sector.
The Centre has provided individuals with loans and a reduction in interest so that the people can easily buy with less effort. The concession provided to the EV manufacturers may range from 6-10%. The Centre has also reduced the interest for loans for getting supplies for EVs between April 1, 2019, and March 1, 2022. States like Delhi and Maharashtra are also providing customers with subsidies. More states are also coming up on introducing subsidies for the manufacturing of EVs. The Centre is planning to introduce Energy Efficiency Services Limited (EESL) who negotiates with the producers to produce three-wheeler EVs and electric buses by giving bulk orders to manufacturers. By doing so there will be a boost in the demand. The Centre and the states are providing quick implementation towards a gradual change in the use of EVs at a higher rate.