Government Extends FAME-India scheme to Promote Electric Vehicles

What is Fame India Scheme?

The FAME India scheme was launched in 2015 under National Electric Mobility Mission Plan (NEMMP) with an aim to promote eco-friendly vehicles in the country. Its objectives are to provide fiscal and monetary incentives for adoption and market creation of both hybrid and electric technologies vehicles in the country. It will also support the hybrid or electric vehicles market development and its manufacturing eco-system in the country in order to achieve self-sustenance in stipulated period. It is being administered by the Heavy Industries Ministry. It will provide demand incentives to electric and hybrid vehicles from a two-wheeler to buses.

The FAME India Scheme is aimed at incentivizing all vehicle segments that is 2 Wheeler, 3 Wheeler Auto, Passenger 4 Wheeler Vehicle, Light Commercial Vehicles and Buses. The scheme covers Hybrid & Electric technologies like Mild Hybrid, Strong Hybrid, Plug-in Hybrid & Battery Electric Vehicles.

Highlights of the Scheme:

  • The government has extended demand incentives worth Rs. 127.77 crore
  • The aim is to make India a 100 per cent electric vehicle nation by 2030
  • The scheme is proposed to be implemented over a period of 6 years
  • FAME-India intends to support hybrid/electric vehicles market development
  • Phase 1 of the FAME-India scheme commenced in April 2015

Government extends FAME-India scheme to promote electric vehicles:

Here’s some good news for the electric and hybrid vehicles/technologies industry and those planning to enter it. FAME India scheme – the government’s flagship programmed to promote the electric and hybrid vehicles industry in the country – has received a formal extension from the concerned ministries (finance, power and heavy industries). The scheme could extend by three-six months.

“Under FAME-India scheme of the government, Department of Heavy Industry has extended demand incentives at Rs 127.77 crore for purchase of 1,11,897 electric/hybrid vehicles since inception of the scheme on 1 April, 2015 until February, 2017,” Minister of State for Heavy Industries and Public Enterprises Babul Supriyo in a written reply to the Lok Sabha.

he FAME-India (Faster Adoption and Manufacturing of (hybrid &) Electric vehicles in India) scheme is proposed to be implemented over a period of 6 years, till 2020, wherein it is intended to support the hybrid/electric vehicles market development and its manufacturing eco-system to achieve self-sustenance at the end of the stipulated period.

Four Phases of Scheme:

  • Technology development
  • Demand creation
  • Pilot projects
  • Charging infrastructure

The Phase-1 of the scheme is being implemented over a two-year period commencing from April 1, 2015, with approved outlay of Rs. 795 crore.

Based on the outcome and experience gained in Phase I (2 years), the scheme shall be reviewed appropriately with inputs from stakeholders and shall be considered for implementation post 31st March 2017 with appropriate allocation of the fund in the future.

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