FAME 2: RS 100 BILLION BUDGET APPROVED TO BOOST EV MARKET IN INDIA

FAME or Faster Adoption and Manufacturing of Hybrid & Electric Vehicles – a scheme launched by Government of India in March 2015 with an aim to promote hybrid and electric witnessed introduction of its second Phase in February 2019. The revised scheme- 'Faster Adoption and Manufacturing of Electric Vehicles in India Phase II (FAME India Phase II) and its guidelines were approved by Union Cabinet for implementation over a period of three years with effect from 1st April 2019.

The scheme aims at promoting faster adoption of electric mobility and development of its manufacturing ecosystem in India. An inter-Ministerial Empowered Committee – Project Implementation and Sanctioning Committee headed by Secretary ( Heavy industry is proposed to be constituted for overall monitoring sanctioning and implementation of the scheme.

The scheme is proposed to be implemented through

  1. Demand Incentives
  2. Establishment of network of charging stations
  3. Administration of Scheme including Publicity , Information Education and Communication activities

The objective of the revised scheme is to encourage faster adoption of electric and hybrid vehicles by offering upfront incentives on purchase of electric vehicles. The scheme also focuses on establishing necessary charging infrastructure for electric vehicles.

The vehicles that are eligible under the scheme are

  1. Buses ( only Electric Vehicle Technology
  2. Four Wheeler( Electric- EV), Plug in Hybrid (PHEV) and Strong Hybrid (SHEV)
  3. Three Wheeler (Electric) including Registered E-Rickshaws
  4. Two Wheelers (Electric)

There is a very clear emphasis on providing affordable and environmentally friendly public transportation options for the masses scheme will be applicable mainly to vehicles used in public transport or those registered for commercial purposes in Three Wheeler, Four Wheeler and Bus segments. However privately owned two wheelers will also be considered under the scheme as a mass segment. The demand incentives would be available to only those vehicles that are fitted with ‘advanced batteries’ such as lithium ion and such other new technology. The scheme aims to support setting up adequate public charging infrastructure instil confidence amongst the EV users through active participation of Government agencies, industries and Public Sector Enterprises(PSEs) . The scheme ensures availability of at least one charging station for every 3 km x 3 km grid, through establishment of charging infrastructure, including 2700 charging stations in metros, million plus cities, smart cities, and cities of hilly states. It also proposes establishment of charging infrastructure on major highways connecting major city clusters, on either side of the highway, at an interval of 25 kilometres each.