As per a notification issued by Ministry of Heavy Industries and Public Enterprises, benefits to given to mild hybrid vehicles under FAME India scheme have been withdrawn with effect from 1st April 2017. The notification also clarified that decision does not apply to sales of mild hybrid vehicles made to retail purchasers up to 31st March 2017.
- This news has negatively affected Maruti Suzuki – the largest car maker in India, whose popular models ‘Ertiga’ and ‘Ciaz’ use hybrid technology and were eligible for benefits under FAME India scheme.
What is a Mild Hydrid Vehcile?
Mild hybrid vehicles have an internal combustion engine which is assisted by an electric motor. This electric motor is not capable of running the vehicle by itself, but supplements the normal fuel engine by using energy (acquired when vehicle applies brakes) stored in a battery. In short, it helps in enhancing fuel efficiency.
National Electric Mobility Mission Plan (NEMMP) 2020:
It was launched in year 2013 with an aim to achieve national fuel security by promoting the usage of hybrid and electric vehicles in the country. It has set an ambitious target of 6-7 million sales of hybrid and electric vehicles year on year from 2020 onwards.
Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles – FAME India Scheme:
- It is a part of NEMMP 2020.
- FAME India scheme was announced in Union Budget 2015-16 with an initial allocation of Rs. 75 crore.
- It is being administered by Ministry of Heavy Industries & Public Enterprises.
- Under this scheme Govt. encourages buyers to purchase hybrid and electric vehicles by providing monetary support.
- At the time of launch, this scheme provided incentives for mild hybrid, strong hybrid, plug-in hybrid and pure electric vehicles.
- Believes that FAME India scheme will give momentum to market for hybrid and electric vehicles for all the segments including 2-Wheelers, 3-Wheelers, 4-Wheelers, Light Commercial Vehicles and Buses.