FAME India Scheme Overview...Presentation Outline 1. FAME India.. A prelude ... Exempted...

8th April 2015

Multi-Stake Holder Workshop

India Habitat Centre, New Delhi

Department of Heavy Industry Ministry of Heavy Industry & Public Enterprises

Government of India

FAME India Scheme Overview (A scheme for Faster Adoption and Manufacturing

of Hybrid & Electric Vehicles in India)

Ambuj Sharma Additional Secretary (DHI)

Presentation Outline

1. FAME India.. A prelude A. Genesis

B. Apex structure & Multi-Stakeholder involvement

C. Learning from Global Experience & Plan for India

2. FAME India Scheme overview - Administrative A. Objective & Implementation Period

B. Thrust Areas & Geographic Coverage

C. Implementation & Review Mechanism

3. FAME India Scheme overview – Technical & Financial A. Vehicles covered & Qualification Parameters

B. Scheme outlay & Demand Incentive

C. Demand Incentive Disbursement mechanism






B. Thrust Areas & Geographic overage





1.A: Genesis of FAME India

Apr, 2011– Cabinet Decision on Launch of National Mission on Electric Mobility (NMEM) : Set-up of three tier apex structure NCEM -> NBEM -> NAB

July, 2011 ~ Oct 2012: Preparation of NEMMP 2020 • NBEM approves broad principles for creation of NEMMP 2020 based on Govt. –

Industry joint Study • Working Groups (& Sub Groups) constituted for micro detailing • NCEM approves Delegation of powers to NBEM • Recommendations and approval of draft NEMMP 2020 by NBEM & NCEM

Jan, 2013 – Launch of National Electric Mobility Mission Plan (NEMMP) 2020 by Hon’ble PM : NEMMP 2020 outlines broad strategies for deployment of xEV’s in India

Jan, 2013 ~ Dec, 2014: Preparation of Implementation Scheme • Deliberations of Working Groups and Stakeholders Consultation for the Scheme • Socio-Techno-Commercial modeling for Demand Incentives • NBEM approval on recommendation & preparations for EFC approval • Fine-tuning of scheme details based on EFC recommendation & EFC approval

Feb, 2015 – Announcement of FAME India scheme by Hon’ble FM • The scheme specifies the details for operationalization of NEMMP 2020

WG

- D

eman

d &

Su

pp

ly I

nce

nti

ves

SG - Validation of Demand Incentives

SG - Vehicle Parameters & Qualification Criteria

SG - Incentive Delivery Mechanism

SG - Demand Assurance Policy

SG - Hybrid Retrofitting

WG

- R

esea

rch

&

Dev

elo

pm

ent

SG – Battery and BMS

SG - Power Electronics and Motors

SG - Testing Infra & HR

WG

– C

har

gin

g In

fras

tru

ctu

re SG – Technology &

Standards

SG – Infrastructure Roll Out

1.B: Apex Structure

DHI, National Automotive Board (NAB)

National Board on Electric Mobility (NBEM)

National Council on Electric Mobility (NCEM)

Demand & Supply, Retrofit

• Government: • DHI, • MoF (DoR, DoE) • Planning Commission,

DIPP • MNRE, • MoRTH • NMCC

• Industry: • SIAM, • ACMA, • SMEV

• Chair: AS, DHI

R&D

• Government: • DHI, • DST, TIFAC, MNRE • MoF (DoR, DoE) • Planning Commission, • MoRTH, NMCC

• Industry: • SIAM, ACMA, SMEV,

BMA • R&D Organizations:

CSIR, DRDO, ARAI, NFTDC, BEL, ARCI, IITs

• Chair: AS, DHI,

Infrastructure

• Government: • DHI, • MoUD, MoP • MoF (DoR, DoE) • Planning Commission,

DIPP, MoPNG • MNRE, MoRTH, NMCC • Electricity Board, Delhi

Metro • Industry:

• SIAM, ACMA, SMEV • Chair: AS, DHI • ARAI, NATRiP

WGs examined specific issues & made recommendations with rationale, strategy on phasing, milestones, criteria and targets DHI would like to place on record it’s sincere appreciation to all stakeholders

1.B: Multi-Stakeholders involvement

• Governments around the world are promoting hybrid/ electric vehicles including countries such as USA, France, Germany, China and Japan.

• Considering the high cost of such new technologies, the major focus across the globe has been on market creation through various forms of incentives particularly demand side incentives.

• The Government-Industry Joint study carried out with help of Knowledge Partner examined all such aspects in Indian context through consumer survey and stakeholder consultation workshops.

• These formed as vital inputs for the FAME India scheme creation.

• India – an active member in CEM & EVI gives an opportunity to be competitive in hybrid and electric mobility on the world map.

1.C: Learning from Global experience

UNITED STATES focusing on both Demand and Supply Side Incentives to promote the local xEV market. Allocated > 5 Billion USD.

Demand Incentives Upto $7,500 for xEVs. Income tax credits and sales tax exemptions

Supply Incentives > $ 2.4 billion soft loans to OEMs

Charging Infrastructure

$ 400 million to set up 15,000 charging stations across US


FRANCE aims to achieve 2 Million xEVs by 2020. Allocated > 3.5 Billion USD.

Demand Incentives Upto $8000 for xEVs Exempted registration, company car tax etc. No tax on electricity for charging xEVs

Supply Incentives Institutional & Govt. purchase of 100,000 EVs

Charging Infrastructure

$ 2 billion for 1 Million charging points by 2015.

CHINA aims to achieve 5 Million xEVs (4Ws) by 2020 and reach xEV penetration level of 20-30% by 2030. Allocated > 25 Billion USD.

Demand Incentives Upto $8800 for xEVs No road taxes on xEVs.

Supply Incentives Taxes and Duty cuts Production incentives to OEMs

Research & Development Around $15 Billion

Pilot Projects $4.4 Billion over the next 10 years

Charging Infrastructure $5 billion for more than 500,000 public chargers


JAPAN aims to achieve 2 M xEV sales by 2025. Allocated > 1.7 Billion USD

Demand Side Upto $2,700 for new xEVs when old car is scrapped and

~$1,100 is provided without scrapping. New xEVs exempt from acquisition and road taxes

Supply Incentive Progressive taxes on vehicle manufacturers based on

engine size.

Charging Infrastructure To set up 15,000 charging stations by 2015

• Public Infrastructure

• Govt. – Industry (PPP Mode)

• Regulatory enablers

• Technology Development

• Govt. – Industry Collaboration.

• Consortia approach

• Tax regime • Duty Structure • OEM investments

• Cash Incentives • Assured Demand • Mandates

Demand Creation

Supply Creation

Infrastruc

ture R&D

Pilot Projects

1.C: NEMMP 2020: Plan for India

NEMMP 2020 outlined four broad objectives:

1. Faster adoption of xEVs in the country

2. Liquid fuel savings

3. Reduction in CO2 and other pollutants

4. Manufacturing eco-system (job creation and technology capability)

Based on the assessment, following projections are made:

Objectives Potential

Total xEV Sales by 2020 (of all vehicle segments) 6~7 Million (YoY)

Cumulative xEV Sales till 2020 (of all vehicle segments) 15~16 Million

Cumulative Fuel Savings (of vehicles supported) ~9500 Million Liters

Cumulative Reduction in CO2 (of vehicles supported) ~24 Million Tonnes

Additional Jobs (in automotive sector) 250,000 – 300,000

1.C: NEMMP 2020: Plan for India

1: Summary – Genesis of FAME India

NMEM National Mission on Electric Mobility (NMEM)

NEMMP 2020 National Electric Mobility Mission Plan (NEMMP) 2020 - NEMMP 2020 outlines broad strategies for deployment of xEV’s in India

FAME India A Scheme for Faster Adoption and Manufacturing of Hybrid & Electric Vehicles in India - The scheme specifies the details for operationalization of NEMMP 2020






B. Thrust Areas & Geographic Coverage





2.A: Objective & Implementation period

• Scheme Objective: The overall scheme is intended to support

the xEV market development and its manufacturing eco-

system to achieve self-sustenance at the end of the stipulated

period.

• The scheme is proposed to be implemented over a period of 6

years, till 2020.

• The scheme is proposed to continue over the above mentioned

period to instill confidence in the industry (to plan investments

and create capacities).

• This scheme is aligned with “Make in India”, “Smart Cities”,

“Smart Grid” and “NAPCC” initiatives.

• Phase-1 of the scheme shall be implemented over a 2 year

period i.e. FY 2015-16 & FY 2016-17 w.e.f 1st April 2015.

2.B: Thrust Areas & Geographic Coverage

• The scheme shall have 4 focus areas i.e. Technology Development, Demand Creation, Pilot Projects and Charging Infrastructure.

• Taking into account high level of environmental pollution and fossil fuel usage in road transport in high density urban centers, this phase of the scheme will be implemented in the following select areas: a. Cities under “Smart Cities” initiatives

b. Major metro agglomerations – Delhi NCR, Greater Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Ahmedabad.

c. All State Capitals and other Urban Agglomerations/Cities with 1 Million+ population (as per 2011 census)

d. Cities of the North Eastern States

2.C: Implementation & Review Mechanism

Overall scheme implementation

• Department of Heavy Industry shall be the nodal Department for the scheme.

• The Department shall be responsible for planning, implementation and review of the scheme. It shall also be responsible for allocation of funds for the various components of the scheme, based on approval and allocation of funds by the Finance Ministry.

• The progress under the scheme shall also be overseen by the National Board for Electric Mobility (NBEM) and the Development Council for Auto & Allied Industries (DCAAI).

• Department of Heavy Industry shall be the nodal agency for addressing issues relating to the guidelines and for removal of difficulties in the implementation of the scheme.

• Department of Heavy Industry shall issue guidelines as and when necessary in order to meet the objectives of the scheme.


Scheme Operationalization:

• Under the overall supervision and direction of Department of Heavy Industry, National Automotive Board shall be the operating agency for the implementation of the scheme including disbursement of funds for the various components.

• Specific projects under Pilot Projects, R&D/Technology Development and Public Charging Infrastructure components shall be approved by the Project Implementation and Sanctioning Committee (PISC), headed by Secretary, Department of Heavy Industry.

• An extensive IEC (Information, Education & Communication) program shall be undertaken for creating consumer awareness and promotion of the scheme, on a need basis, through education and training, publicity, organization of business meets/seminars/conferences/symposia etc. jointly by Department of Heavy Industry, Voluntary Organizations, etc.

• The Department of Heavy Industry shall carry out a scientific analysis of data for verification of performance parameters, fossil fuel savings etc. as a result of this scheme.


R&D / Technology Development

• The scheme will implement “demand driven R&D to achieve desirable target specs” for which the efforts would be to synergize Government – Industry – Academia cooperation to maximize objectives of increasing domestic capacities of product and technology development and commercialization aimed at making the xEV market self-sustaining.

• Projects of applied nature with an aim to introduce viable technologies at the field level will be given priority.

• A nodal body, called “Technology Advisory Group (TAG) on Electric Mobility” under joint supervision of Department of Heavy Industry and Department of Science and Technology, will focus on technology foresight and road mapping, benchmarking, project nucleation and proposal evaluation.

• Specific projects formulated by TAG & CoE’s (Centres of Excellence) on key xEV technologies would be approved for release of funds by the Project Implementation and Sanctioning Committee (PISC).


Testing Infrastructure

• The automotive testing infrastructure for R&D, testing and homologation will be upgraded for meeting the requirements of new regulations and standards (ex. motor test beds, battery test beds etc.).

• Department of Heavy Industry (DHI) through National Automotive Board (NAB) shall be the nodal agency for the creation of such infrastructure.


Pilot Projects

• DHI/NAB shall be the nodal agency on behalf of Central Government for implementation of pilot projects under the scheme. State governments may also identify a suitable nodal agency for execution of pilot programs in their respective areas.

• The pilot projects are intended to fulfil objectives of introduction of new technologies, trial of new business models etc. with special focus on public transportation.

• To ensure maximum impact, project scope will be based on city/state needs, viability & active participation of various stake holders and shall be given financial support by the Department of Heavy Industry through viability gap funding or by other ways of funding under the scheme on a case to case basis.

• Proposals for pilot projects shall be approved/sanctioned by the Project Implementation and Sanctioning Committee (PISC).






B. Thrust Areas & Geographic overage





3.A: Vehicles Covered

Hybrid and Electric Technologies (Mild Hybrid, Strong Hybrid, Plug-in Hybrid and Pure Electric) are covered.

Following categories of vehicles shall be eligible to avail demand incentives under the scheme:

a) Two Wheelers (Category L1 & L2 as per CMVR)

b) Two Wheelers (Max power not exceeding 250 Watts)

c) Three Wheelers (Category L5 as per CMVR)

d) Passenger Cars (Category M1 as per CMVR)

e) LCVs (Category N1 as per CMVR)

f) Buses (Category M3 as per CMVR)

g) Retrofitment (Category M1, M2 & N1 as per CMVR)

QUALIFICATION PARAMETERS for the purpose of demand incentives have been decided based on study of Global practices and by suitable amendments required for India.

The focus is on QUALITY (Safety and Emissions) and PERFORMANCE (Fuel Savings & Electric Range)

Qualification Parameters (common for all vehicle segments i.e. 2W, 3W, 4W, LCV and Bus)

Parameters Mild HEV Strong HEV Plug-in HEV/

RE-EV BEV

Within the purview of CMVR Yes Yes Yes Yes

Compliance to Safety and

Emission Regulations Yes Yes Yes Yes

Technology Functions Yes Yes Yes Yes

Fuel / Electrical Energy

Consumption Yes Yes Yes Yes

Electric Range Not Applicable Not Applicable Yes Yes

3.A: Vehicle Qualification Parameters

3.B: Scheme Outlay

• The Phase-1 of the scheme has a total outlay of Rs 795 crore, over 2 years

• As initial outlay, Rs 75 Crore has been provided in Union Budget 2015-16.

• Rest of the fund shall be arranged by DHI from Automotive Cess fund, DHI Plan funds in consultation with Ministry of Finance.

• Flexibility of fund distribution among 4 focus areas shall be there, subject to approval by PISC.

Component of the scheme 2015-16 2016-17

1. Technology Platform (Including testing infrastructure)

Rs. 70 Crore Rs. 120 Crore

2. Demand Incentives Rs. 155 Crore Rs. 340 Crore

3. Charging Infrastructure Rs. 10 Crore Rs. 20 Crore

4. Pilot Projects Rs. 20 Crore Rs. 50 Crore

5. IEC/Operations Rs. 05 Crore Rs. 05 Crore

Total Rs. 260 Crore Rs. 535 Crore

Grand Total Rs. 795 Crore

3.B: Demand Incentive - Principles

• The demand incentive amount has been determined for each category (vehicle – technology – battery type), taking into account the principles of Total Cost of Ownership (TCO), Pay-back Period on account of fuel savings, cost of maintenance etc.

• Vehicles under the scheme have been categorized based on two types of battery technologies: ‘Conventional Battery’ and ‘Advance Battery’. – ‘Conventional Battery’ represents the batteries with Lead as the principal chemical Element.

– ‘Advance Battery’ represents the new generation batteries without Lead such as Lithium polymer, Lithium Iron phosphate, Nickel Metal Hydride, Zinc Air, Sodium Air, Nickel Zinc, Lithium Air etc.

• The Demand Incentive is proposed in 2 slabs – Level 1 and Level 2. In principle, the ‘Level 2’ incentive shall be around 120% of the ‘Level 1’ incentive.

• In general, in order to qualify for ‘Level 2’ incentive slabs, the vehicle shall have to meet 50% higher qualifying targets vis-à-vis ‘Level 1’ incentive.

• The principle of having two incentive slabs is proposed to promote development of technologies and vehicles with higher fuel savings potential.

3.B: Demand Incentive – 2W

Category: L1, L2 &


Category: L5 (Three Wheelers)


Category: M1

3.B: Demand Incentive – LCV

Category: N1

3.B: Demand Incentive – Buses

Category: M3

3.B: Demand Incentive – Retrofitment

Category: M1, M2 & N1 (Retofitment)

3.C: Demand Incentive Delivery Mechanism

3.C: Demand Incentive Delivery Mechanism

• The demand incentive shall be disbursed through an e-enabled framework and mechanism set-up under DHI/NAB.

• Under this mechanism the manufacturer will reduce the purchase price of a hybrid and electric vehicle (the purchase price will be reduced by the level of the eligible predetermined incentive amount) at the time of selling to the buyer.

• The manufacturers of vehicles and hybrid retrofit kit manufacturer/supplier will submit their claims for reimbursement of demand incentive on monthly basis to the Department of Heavy Industry/NAB.

• Claim for incentive reimbursement shall be settled in not more than a month’s time.

Role of State Governments

State Governments have an important role in successful implementation of the scheme through a mix of following measures: • Fiscal measures – Reduction of VAT, Registration charges, Road Tax etc

for xEVs

• Enabling measures for establishing charging infrastructure including amendment in building byelaws/ planning permissions.

• Identification and introduction of Pilot Projects

• Direct Financing, particularly for Public Transportation through State Finance Corporations.

• Aligning various state government subsidies / loan schemes under SC/ST welfare, Women welfare, Youth welfare, Backward classes welfare, Ex-servicemen welfare etc. to promote electric mobility.

For Public Information

1. The FAME India scheme has been notified by Government of India vide Gazette Notification No.631 dt. 25th March 2015, based on Department of Heavy Industry, MoHI&PE S.O. No 830(E) dated 13.03.2015.

The same has been uploaded in DHI website

http://dhi.nic.in/Gazette_Notification_FAME_India.pdf

2. An Office Memorandum has been issued by Department of Heavy Industry to Test agencies for testing and approval of xEVs, and to certify the claim for incentives as per the FAME India scheme guidelines.

The same has been uploaded in DHI website

http://dhi.nic.in/OM_FAME_India.PDF



















Thank You Very Much

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FAME India Scheme Overview...Presentation Outline 1. FAME India.. A prelude ... Exempted...

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