FAME Scheme

The National Electric Mobility Mission Plan (NEMMP) 2020 is a National Mission document providing the vision and the roadmap for the faster adoption of electric vehicles and their manufacturing in the country.
As part of the NEMMP 2020, the Department of Heavy Industry (under the Ministry of Heavy Industries & Public Enterprises) formulated a Scheme viz. Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME India) Scheme in 2015.
The objective of the FAME India scheme is to promote manufacturing of electric and hybrid vehicle technology and to ensure sustainable growth of the same.
The scheme encourages adoption of Electric and hybrid vehicles by offering upfront incentives on purchase of Electric vehicles and establishing a necessary charging Infrastructure for electric vehicles.
The scheme aims at addressing the issue of environmental pollution and fuel security.

Phase-I

The Phase-I of this Scheme was initially launched for a period of 2 years, commencing from 1st April 2015, which was subsequently extended up to 31st March 2019.
The 1st Phase of FAME India Scheme was implemented through four focus areas namely (i) Demand Creation, (ii) Technology Platform, (iii) Pilot Project and (iv) Charging Infrastructure.

Phase-II

Phase-II of FAME India Scheme is being implemented for a period of 3 years w.e.f. 01st April, 2019.
This phase focuses on supporting electrification of public & shared transportation and aims to support, through subsidies, approximately 7000 e-Buses, 5 lakh e-3 Wheelers, 55000 e-4 Wheeler Passenger Cars and 10 lakh e-2 Wheelers.
In addition, creation of charging infrastructure is also supported for electric vehicles.

Key Objectives

Encourage faster adoption of electric and hybrid vehicles by way of offering upfront Incentive on purchase of Electric vehicles.
Establishing necessary charging Infrastructure for electric vehicles.
To address the issue of environmental pollution and fuel security.

Under the FAME-India Scheme, incentives are provided to buyers of electric vehicles in the form of an upfront reduction in the purchase price of electric vehicles.
The incentive is linked to battery capacity i.e. Rs. 10,000/KWh for e-3W and e-4W with a cap 20% of the cost of vehicle. Further, the incentive/ subsidies for e-2W has been increased to Rs. 15,000/KWh from Rs. 10,000/KWh with an increase in cap from 20% to 40% of the cost of vehicle w.e.f. 11th June, 2021.

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