Explained: What is FAME-India Scheme

FAME scheme of the GoI

FAME-India (Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India) is a government scheme launched in 2011 as a part of the National Mission on Electric Mobility.

The scheme aims to promote the adoption of electric and hybrid vehicles in India, with the ultimate goal of reducing the country's dependence on fossil fuels, reducing air pollution, and mitigating the impact of climate change.

The scheme provides incentives to manufacturers and buyers of electric and hybrid vehicles and aims to increase demand for these vehicles by making them more affordable and accessible. The scheme has been extended multiple times since its launch, and its current phase is valid till 2024. Under the scheme, the government provides incentives to manufacturers of electric and hybrid vehicles to reduce their production costs and also provides subsidies to buyers of these vehicles to make them more affordable.

The scheme also provides funding for the development of charging infrastructure for electric vehicles, with the goal of creating a robust charging network that can support the widespread adoption of electric vehicles in the country.

Phases of the scheme

Phase I of the scheme was implemented by the concerned authorities and focused on four key areas: demand creation, technology platform, pilot projects, and charging infrastructure.

Phase II or FAME II of the scheme focuses on the electrification of public and shared transportation. The government has allocated a budget of ₹ 10,000 crores for this phase. The scheme aims to provide incentives to various categories of vehicles, including electric two-wheelers, electric four-wheelers, hybrid four-wheelers, e-rickshaws, and e-buses.

Recent News

the government reducing the cap on incentives to 15 per cent on the ex ­factory price from 40 per cent under Phase II of FAME. In a Gazette notification, the Ministry of Heavy Industries (MHI) said, “Amendments are made with effect from June 1, 2023, and would be applicable to all e­2Ws registered on or after June 1, 2023. The amendments also include a reduction in the demand incentive to ₹10,000 per kilowatt per hour (kWh) from ₹15,000 per kWh.

business line had reported on May 17 that the Ministry is likely to increase the FAME­II scheme outlay to around ₹ 1,500 crore for FY24, with a cap on the incentive of ₹ 10,000 per kWh of battery capacity in e­2W, along with a cap of 15 per cent of the ex­factory price.“The proposed increase in the scheme outlay and the reduction in the subsidy per vehicle will enable longer government support for the e­2W segment.