FAME India Scheme

Submitted by pradeep on Fri, 13/09/2024 - 16:32
Scheme Status
Permanently Closed
Overview of Scheme
Name of Scheme FAME India Scheme
Launched Year 2015
Benefits
  • To promote Hybrid and Electric Vehicles
  • Incentives of EVs.
Beneficiary Public and Manufacturer.
Nodal Department Ministry of Heavy Industries and NITI Ayog
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Mode of Apply Applicants are not require to submit application for FAME India Scheme

Introduction

  • On April 1, 2019, the central government of India approved the second phase of the FAME Scheme.
  • FAME which stands for Faster Adoption and Manufacturing of Electric Vehicles, introduced in India with a vision to encourage people for the adoption of Hybrid and Electric Vehicle.
  • For the implementation of FAME Phase II Scheme, the government outlays an amount of Rs 10,000 Crore.
  • Initially, the FAME II scheme was implemented for a period of three years, later it was extended until 31 March 2024.
  • FAME II is an extended version of FAME scheme that was launched in the year 2015 with a total outlay of Rs 895 crores.
  • Government introduced FAME under the National Electric Mobility Mission Plan (NEMPP).
  • NEMPP aims to reduce the consumption of traditional fuel like petrol and diesel.
  • The main objective of FAME is to promote the adoption of hybrid and electric vehicles in the market, replacing conventional vehicles and reducing the dependency of liquid fuels in the country.
  • To achieve this, the government focuses on some areas in Phase 1, like : -
    • The development of technology,
    • generating demand of hybrid and EVs.
    • Run pilot projects, and
    • Building charging infrastructure.
  • After getting some success and with learning of phase 1, the government approved FAME Phase II in 2019.
  • However, based on the feedback from the industry and user, the government redesigned the scheme in 2021 during COVID.
  • In amendment, FAME II experienced following changes : -
    • It was extended for two more years.
    • To bring down the upfront cost of the Electric three wheelers, incentive of electric two wheelers was increased from Rs 10,000/kwh to Rs 15,000/kwh, with maximum cap increased from 20% to 40% of the vehicle cost.
    • Nine cities with over 4 million population were targeted for deployment of electric buses.
  • The redesign policy of FAME II helps to achieve its targets, with sales of electric two wheelers increased from 700 per week to 5000 per week.
  • In the year 2023, the government amended the subsidy linked to battery capacities i.e. 10,000 KWh for e-3W and e-4W with 20% cap of the vehicle cost.
  • Whereas, the incentive of e-2W has been fixed at 10,000 per kWh with cap of 15% of the vehicle total cost.
  • Under FAME India Scheme Phase II, the government emphasized on electrification of public transportation, and aims to provide support through incentive to
    • 7,090 e-Buses,
    • 5 lakh e-three wheelers,
    • 55,000 e-4 wheeler passenger card,
    • and 10 lakh e-2 wheelers.
  • To achieve these targets, the government is providing incentives and subsidies on electric vehicles to buyers and manufacturers involved in the business.
  • Along with this, manufacturers will also receive incentive on the development of lithium ion batteries and motors.
  • Moreover, the Central government has also directed the state government to provide incentives and subsidies to both manufacturers as well as buyers.
  • Under the scheme, the Government also reduces GST on EVs from 12% to 5% and GST on chargers or charging stations also reduced to 5% from 18%.

Background

  • In 2013, the government of India launched a programme called National Electric Mobility Mission Plan (NEMPP) to reduce the consumption of traditional fuel (Petrol and Diesel).
  • To reduce fuel dependency among the people, and for the adoption and manufacture of electric vehicle, the government introduces FAME India Scheme in 2015.
  • FAME India Scheme will focus on the adoption of Electric and Hybrid vehicle in the country.
  • With this scheme, the government aims to save around 9500 million crude oil, which is equivalent to Rs 62000 Cr.
  • To achieve this, the government will provide incentive on the purchase of EVs.

Benefits of FAME India Scheme

  • The scheme encourages people to adopt hybrid and electric vehicles which offers following benefits : -
    • Subsidy on the purchase of electric 2W, 3W, and 4W vehicles.
    • Additional subsidy will also be provided by the respective state government.
    • Zero road and registration fees.
    • Cleaner and greener environment.
    • Low Maintenance, zero emission of EVs.
    • Charge easily at home and stations established across the country.
    • Reduce dependency on crude oil.

Phases of Fame India Scheme

  • Since its announcement, the government introduces the scheme phases. In each phase, government allocated different budget with some targets that are to be achieved during that period. As of now, the government introduces two phases and its third phase is to be announced soon. The details of the first two phase are discussed below : -

FAME India Scheme: Phase I

  • FAME India Scheme was introduced in the year 2015 and remains functional till March 31, 2019.
  • For its implementation, the government outlays a budget of Rs 895 crore.
  • FAME India Phase 1 aimed to create an ecosystem for the electric and hybrid vehicle.
  • Under Phase 1, the government primarily focuses on following verticals : -
    • First; the development of technology used in Hybrid and Electric Vehicles.
    • Second, to generate demand for Hybrid and EVs.
    • Third; to run various pilot projects.
    • Fourth, to build a strong charging infrastructure.
  • Under FAME India Scheme Phase 1, the government achieves following targets : -
    • Government distributed incentives of Rs 360 crores for 2.8 lakh electric vehicles.
    • 425 hybrid and electric buses were deployed in various cities by providing incentives of Rs 280 crore.
    • Rs 43 crore were sanctioned, to set up 520 charging stations,
  • For its adoption, the government determine incentives for each categories.

FAME India Scheme: Phase II

  • After achieving success in Phase 1, the government introduced FAME 2 in the year 2019 for the next five years.
  • For phase 2, the Government allocated a fund of Rs 10,000 Cr.
  • Under this phase, the department has sanctioned 2,877 EVs charging stations in 68 cities across 25 States and UTs.
  • They aim to provide at least one charging station in a 3 km x 3 km grid.
  • Charging station will be established on both sides of the highway at an interval of 25 km.
  • It emphasizes on the electrification of Public Transportation.
  • In phase 2, around 7,000 e-buses, 55,000 e-4W passenger cars, 5,00,000 e-3W commercial vehicles, and 10,00,000 e-2W are to be incentivized.
  • Incentives in the 3 Wheel and 4 wheel categories will be provided to vehicles registered for commercial purposes.
  • Whereas, in the 2 wheel category the focus will be on private vehicles.
  • Benefits under the scheme will be provided to those vehicles which are equipped with advanced lithium ion batteries.
  • On July 2023, the government releases the vehicle sold under FAME II scheme are given as : -
    Wheel Type
    Number of Vehicles Sold
    Two Wheeler 7,40,722
    Three Wheeler 83,420
    Four Wheeler 8,982

FAME India Scheme: Phase 3

  • On September 11, 2024, the Union Minister of Heavy Industries announced the next phase of the scheme called as PM E Drive Scheme.
  • PM E-Drive Scheme stands for PM Electric Drive Revolution In Innovative Vehicle Enhancement.
  • With the launch of the PM e-drive scheme the government has replaced the FAME India scheme.
  • Under this scheme, the government will provide subsidies to electric two wheelers, three wheelers, and e-buses.
  • Whereas, electric cars are not going to receive any subsidy or relaxation under this PM E-drive Scheme.
  • To avail the subsidy, beneficiaries will received E-vouchers.

Eligibility Criteria

  • Vehicles with the following criteria may avail the scheme benefits : -
    • Vehicles with advanced lithium ion batteries registered with CMVR.
    • Vehicles used for Public Transport and registered for commercial purpose.
    • Private two wheelers are also eligible.

How to Apply

  • Beneficiaries are not required to apply for the FAME India Scheme.
  • Incentive benefits under the scheme will be provided to beneficiaries directly on the purchase of electric vehicles.
  • Incentives percentage marked under the scheme shall be deducted by the seller during the purchase of vehicle.
  • However, manufacturers will receive benefits directly from the central and state government.

Important Links

Contact Details

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