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ARAI gets Rs 80 Crore Grant for R&D under FAME-India Scheme

Published On Sep 21, 2015By Prashant Talreja

In order to make the FAME-India (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) scheme a reality, central government has granted Rs. 80 crore to the Automotive Research Association of India (ARAI). ARAI has been chosen as one of the Centers of Excellence for promoting electric/hybrid mobility in India. A sum of Rs. 30 crore has already been provided to the organization and the rest of the grant money will be given next year.

The government has allocated a budget of Rs. 795 crore till 2020 for the manufacture and sale of hybrid and electric vehicles in the country. The current grant will be utilized by ARAI for the development of its new campus at Chakan, near Pune. ARAI’s R&D initiative will concentrate on eco-friendly mobility solutions that will include comprehensive vehicle design changes, introduction of lightweight materials for buses, and conversion of existing vehicle fleets to hybrid or electric mode.

The major focus area for Electric Vehicles (EVs) will be public transportation as the sector will be benefitted the maximum after the solutions are implemented. The changes will apply to a range of vehicles, from two-wheelers to buses. As there are several risks associated with EVs, ARAI will consider prioritizing safety in its development and evaluation programs.

The FAME-India scheme will have four focus areas—technology development, demand creation, pilot projects and charging infrastructure. The government aims to carry out the Phase-1 of the scheme over a two-year period in FY 15-16 and FY 16-17 and plans to implement the overall scheme over a period of six years.

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