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Home / IAS Preparation / Government Schemes of India / National Electric Mobility Mission Plan

National Electric Mobility Mission Plan (NEMMP) 2020 - Structure, Objectives, FAME Phases & Significance

Last Updated on Jul 03, 2024
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The National Electric Mobility Mission Plan (NEMMP) is an ambitious initiative launched by the Indian government to promote the adoption of electric and hybrid vehicles in the country. The plan aims to reduce the dependence on fossil fuels. It aims to improve air quality while promoting sustainable transportation in India. It provides incentives for manufacturers and buyers of electric vehicles and promotes research and development in the field of electric mobility. The plan has set targets for the adoption of electric and hybrid vehicles in various segments. It has created a structure for speedy decision-making and collaboration among stakeholders. 

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The NEMMP is expected to significantly transform India's mobility landscape in the coming years.

The National Electric Mobility Mission Plan (NEMMP) 2020 is one of the important topics for the UPSC IAS exam. It is a part of the Environment subject in the Mains General Studies Paper-III syllabus. It is also a part of the General Studies Paper-1 of the UPSC Prelims Syllabus.

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Click on this link to download the Environment Notes for UPSC!

What is National Electric Mobility Mission Plan (NEMMP) 2020?

The National Electric Mobility Mission Plan (NEMMP) 2020 is an Indian government initiative. It aims to promote the adoption of electric and hybrid vehicles in the country. The plan includes the following measures:

  • providing incentives for manufacturers, 
  • promoting charging infrastructure, and 
  • encouraging research and development in the sector. 

Its ultimate goal is to reduce India's dependence on fossil fuels and to promote sustainable transportation.

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Mission Statement of NEMMP 2020

To encourage reliable, affordable and efficient xEVs that meet consumer performance and price expectations through Government - Industry collaboration for promotion and development of indigenous manufacturing capabilities, required infrastructure, consumer awareness and technology; thereby helping India to emerge as a leader in the xEV Two Wheeler and Four Wheeler market in the world by 2020, with total xEV sales of 6-7 million units thus enabling Indian automotive Industry to achieve global xEV manufacturing leadership and contributing towards National Fuel.

Target of NEMMP 2020

The government has set an ambitious goal of achieving annual sales of 6-7 million hybrid and electric vehicles starting in 2020. To promote this emerging technology, the government plans to offer fiscal and monetary incentives. With government support, the cumulative sales target is projected to reach 15-16 million by 2020. This initiative is expected to save 9,500 million liters of crude oil, equivalent to a savings of Rs. 62,000 crore.

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Objectives of the National Electric Mobility Mission Plan

NEMMP aims to promote the adoption of electric and hybrid vehicles in the country. Here are some key objectives of the plan:

  • To reduce the dependence on fossil fuels and foster sustainable transportation in India.
  • To enhance the manufacture and adoption of electric and hybrid vehicles in the country.
  • To develop a network of charging infrastructure for electric vehicles across the country.
  • To encourage research and development in the field of electric mobility.
  • To create employment opportunities in the electric mobility sector.
  • To improve air quality and reduce greenhouse gas emissions in the country.

FAME Phase-I

FAME stands for Faster Adoption and Manufacturing of Hybrid and Electric Vehicles. FAME Phase-I was launched in 2015. Here are some key points:

  • The scheme aimed to provide incentives to manufacturers and buyers of electric and hybrid vehicles.
  • It also aimed to establish charging infrastructure for electric vehicles.
  • FAME Phase-I had a total outlay of INR 795 crore (approximately USD 110 million).
  • The scheme was implemented for a period of two years and ended in March 2017.
  • The FAME India Scheme’s first phase was implemented through four focus areas: demand creation, technology platform, pilot project, and charging infrastructure.
  • During its implementation, FAME Phase-I helped in the sale of around 1.5 lahks (150,000) of electric and hybrid vehicles in India.

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FAME Phase-II

Here are some key points of FAME Phase II:

  • It was launched in 2019 for a period of three years with a total outlay of INR 10,000 crore (approximately USD 1.3 billion).
  • FAME Phase II has a particular focus on the development and production of electric vehicles and their components in India.
  • Eighty-six percent of total budgetary support has been earmarked for the Demand Incentive to stimulate demand for xEVs.

Significance of National Electric Mobility Mission Plan (NEMMP) 2020
  • The NEMMP 2020 has set an ambitious goal of selling 6-7 million hybrid and electric vehicles by the year 2020.
  • Based on the lessons learned in Phase I of the FAME India Scheme, it has been determined that a sufficient number of charging infrastructure is necessary to meet the desired effect of the plan, which is currently being addressed in Phase II of the FAME Scheme.
  • The scheme’s principal goal is to encourage faster adoption of electric and hybrid vehicles by providing an upfront incentive for the purchase of electric vehicles as well as developing the necessary charging infrastructure for electric vehicles.

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Structure of National Electric Mobility Mission Plan
  • Empowered bodies have been established at the apex level. This is to ensure greater collaboration among various stakeholders and for speedier decision-making. 
    • The bodies include the National Council for Electric Mobility (NCEM) and the National Board for Electric Mobility (NBEM).
  • The NCEM consists of Ministers from key Central Ministries/Departments, industry representatives, and academia. 
    • It is chaired by the Hon'ble Minister for Heavy Industries & Public Enterprises.
  • The National Board for Electric Mobility will assist the council. It comprises 25 members. 
    • The members include secretaries from stakeholder Central Ministries/Departments, industry representatives, and academia.
  • Initially, the NATRiP Implementation Society (NATIS) will serve the National Council and the National Board. Later, the National Automotive Board (NAB) will take over.

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Government Initiatives for Faster Adoption of Electric Vehicles

The Indian government has launched several initiatives to promote the adoption of electric vehicles in the country. Here are some key initiatives:

  • FAME (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) Scheme provides incentives to manufacturers and buyers of electric vehicles.
  • NITI Aayog's proposal to ban the sale of all petrol and diesel vehicles by 2030.
  • Income tax exemptions on loans taken to buy electric vehicles.
  • Reduced GST rates on electric vehicles from 12% to 5%.
  • Exemption of road tax and registration fees for electric vehicles in some states.
  • Launch of the National E-Mobility Program to support the development of a sustainable electric mobility ecosystem in the country.

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National Electric Mobility Mission Plan 2020 (NEMMP 2020) Overview for UPSC Exams

National electric Mobility Mission Plan 2020 Overview 

What is the National Electric Mobility Mission Plan 2020?

National mission document for the faster adoption of electric vehicles and their manufacturing in the country

When was NEMMP 2020 launched?

The government of India launched the National Electric Mobility Mission Plan (NEMMP) 2020 in 2013

Who formulated NEMMP 2020?

The Department of Heavy Industry formulated NEMMP 2020 to promote the manufacturing of electric and hybrid vehicle technology and to ensure sustainable growth of the same.

What was the target set ?

6-7 million sales of hybrid and electric vehicles year on year from 2020 onwards

Latest Update on NEMMP 2020

On February 11, 2021, the government informed Parliament that it planned to subsidize approximately 62,000 electric passenger cars, buses, and 15 lakh electric three- and two-wheelers.

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More Articles for IAS Preparation

National Electric Mobility Mission Plan 2020 - FAQs

In 2013, the Indian government announced the National Electric Mobility Mission Plan (NEMMP) 2020.

NEMMP 2020 was a huge success in terms of igniting a substantial policy debate on electric mobility among all stakeholders, including several departments of the Government of India.

The Fame India plan is an incentive programme that promotes the use of electric and hybrid automobiles.
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