FAME India Phase II

  Jul 20, 2020

FAME India Phase II

The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has approved the proposal for implementation of scheme titled 'Faster Adoption and Manufacturing of Electric Vehicles’ in India Phase II (FAME India Phase II)' for promotion of Electric Mobility in the country.

What is FAME and what are its objectives?

The main objective of the scheme is to encourage Faster adoption of Electric and hybrid vehicle by way of offering upfront Incentive on purchase of Electric vehicles and also by way of establishing a necessary charging Infrastructure for electric vehicles. The scheme will help in addressing the issue of environmental pollution and fuel security.

What is the duration and financial implication of the scheme?

The scheme with total outlay of Rs. 10,000 Crores over the period of three years will be implemented with effect from 1st April 2019 (to 2022). This scheme is the expanded version of the present scheme titled 'FAME India I’ which was launched on 1st April 2015, with total outlay of Rs. 895 crores.

How did the FAME I scheme perform?

The FAME II is an expanded version of FAME I, launched in 2015 which aimed to support hybrid/electric vehicles market development and Manufacturing ecosystem and hence, laid the strong ecosystem of Electric vehicles development. FAME II further builds upon the pedestal of FAME I with significant budgetary allocations.

The FAME scheme is part of the National Electric Mobility Mission Plan (NEMMP). It aims to achieve national fuel security by promoting hybrid and electric vehicles in the country. 

Who will be the beneficiaries and what is the incentive structure of the scheme?

Emphasis is on electrification of public transportation that includes shared transport. Demand Incentives on operational expenditure mode for electric buses will be delivered through State/city transport corporation (STUs).

In 3W and 4W segment incentives will be applicable mainly to vehicles used for public transport or registered for commercial purposes.

In the e-2Ws segment, the focus will be on the private vehicles. Through the scheme, it is planned to support 10 Lakhs e-2W, 5 Lakhs e-3W, 55000 4Ws and 7000 Buses.

What else the Scheme envisages?

The scheme further encourages advance technologies, the benefits of incentives, will be extended to only those vehicles which are fitted with advance battery like a Lithium Ion battery and other new technology batteries.

The scheme proposes for establishment of charging infrastructure, whereby about 2700 charging stations will be established in metros, other million plus cities, smart cities and cities of Hilly states across the country so that there will be availability of at least one charging station in a grid of 3 km x 3 km.

Establishment of Charging stations are also proposed on major highways connecting major city clusters. On such highways, charging stations will be established on both sides of the road at an interval of about 25 km each.