What is FAME India Scheme?

The FAME India (Faster Adoption and Manufacture of (Hybrid and) Electric Vehicles) Scheme was launched by the Ministry of Heavy Industries and Public Enterprises in 2015 to incentivize the production and promotion of eco-friendly vehicles including electric vehicles and hybrid vehicles.

FAME India is a part of the National Electric Mobility Mission Plan. Main thrust of FAME is to encourage electric vehicles by providing subsidies.  Vehicles in most segments – two wheelers, three wheelers, electric and hybrid cars and electric buses obtained the subsidy benefit of the scheme.

Benefits under FAME scheme

At present, the FAME scheme gives incentives to electric scooters ranging between Rs 1700 to Rs 39,000. For three-wheelers, the incentives range from Rs 3300 and Rs 61,000 and for electric and hybrid cars, the benefits ranges from Rs 11,500 to Rs 1.43 lakh. Electric buses cost about Rs 55 lakh less under the scheme.

Focus areas of FAME

The scheme covers Hybrid and Electric technologies like Mild Hybrid, Strong Hybrid, Plug in Hybrid & Battery Electric Vehicles.

FAME focuses on 4 areas i.e. Technology development, Demand Creation, Pilot Projects and Charging Infrastructure.

Phase I of FAME

FAME is designed to implement in a phased manner. Phase I of the FAME-India Scheme was scheduled for a two-year period between April 1, 2015, and March 31, 2017, at an approved outlay of Rs 795 crore.  But later it was extended to August 31, 2018. Approximately 2,18,625 Electronic Vehicles were ‘promoted’ by FAME I till July 2018.

It is expected that the government will launch FAME -II by the first week of September 2018.

FAME-India is part of the National Electric Mobility Mission Plan (NEMMP), which was launched in 2015. Under the NEMMP scheme, the government aimed to invest Rs 14000 crore in creating infrastructure and promoting the use of electric vehicles.

The phase-I of the scheme is being implemented for a period of 2 years i.e. from 2015-16 and FY 2016-17. Government is expected to bring the Phase II of FAME (FAME -II) by the first week of September 2018.

The mother programme of FAME- the National Electric Mobility Mission Plan (NEMMP) 2020 was launched in 2013 to achieve sales of six-seven million units of electric vehicles and thus to realise fossil fuel saving of 2.2 to 2.5 million tonnes.

Such a promotion of electric vehicles will substantially lower vehicular emissions and decrease in carbon dioxide emissions by up to 1.5% by 2020.

In early 2018, the Ministry of Power launched the new National Electric Mobility Programme with broad objectives. Here, the focus is for establishing the electric charging infrastructure and a policy framework to set realise more than 30% electric vehicles by 2030.

*********