FAME I & II Scheme in India

FAME stands for Faster Adoption of Manufacturing of Electric & Hybrid Vehicles in India.

FAME scheme was launched by Indian Govt on 1^st April, 2015 to promote electric vehicles in India with an objective of sustainable growth by reducing the pollution produced by diesel & petrol vehicles.

This scheme was launched by the Ministry of Heavy Industries & Public Enterprises. It has two phases FAME I & FAME II.

FAME I :

This is first phase of the scheme which was functional for four years from 1^st April, 2015 to 31^st March, 2019 with following objectives –

• Demand creation for electric vehicles,
• Technology platform required to promote/support electric vehicle manufacturing
• Setting up of Pilot projects &
• Develop charging infrastructure

Its an incentive scheme to encourage fast adoption of electric & hybrid vehicles in all segments such as 2 wheelers, 3 wheelers, 4 wheelers light commercial vehicles & buses. Under this scheme, Ministry allocated yearly fund where about 2.78 lakh xEVs were supported with a total demand incentives of Rs. 343 Crore [Approx]. Also, 465 buses were sanctioned to various cities/states under this scheme.

FAME II –

The Department of Heavy Industry notified phase-II of FAME scheme on 8^th March, 2019 after success/experience of phase I scheme for next three years starting from 1^st April, 2019 to 31^st March, 2022. (Complete detail is available on department’s website www.dhi.nic.in). Now this scheme has been further extended for next two years i. e. up to 31^st March, 24.

Govt has allocated Rs 10,000 Cr in ph-II scheme. Following actions are to be taken in this phase –

• 86% of the fund has been allocated for demand incentive so as to create demand for EVs in the country.
• This scheme will be utilized in following verticals –

1. Demand incentives,
2. Establishment of network of charging stations
3. Administration of scheme including Publicity, IEC (Information, Education & communication) activities.

• The efforts of central govt to promote e-mobility need supplemental support from state govt in the form of non-fiscal incentive which includes waiver/concessional road tax, exemption from permit, waiver/concessional toll tax, waiver/concessional parking fee, concessional registration charges.

A brief detail of scheme is given below –

1. Demand Incentives:

    

The proposed demand incentive is given Rs 10,000/- per KWh (of battery capacity) for all electric vehicles except buses. Incentive for buses is Rs 20,000/- per KWh (of battery capacity). Complete details of vehicles eligible for incentive are given below –

Max No. of Vehicle               Approx. size of           Total Approx.         Max Ex-factory price

to be supported                   battery in Kwh              Incentive               to avail incentive 

1. Registered -e 2 Wheelers:

            10,00,000                           2 Kwh                        Rs 20,000/-                Rs. 1.5 Lacs

2. Registered – e 3 Wheelers (including eRikshaw):

5,00,000                           5 Kwh                        Rs 50,000/-                Rs. 5 Lacs

3. e -4 Wheelers:

35,000                           15 Kwh                       Rs 1,50,000/-            Rs. 15 Lacs

4. 4 W Strong Hybrid Vehicle:

20,000                           1.3 Kwh                       Rs 13,000/-               Rs. 15 Lacs

5. E-Bus:

•    7090                                250 Kwh                       Rs 50,00,000/-          15 Lacs 

1. Establishment of network of charging stations: 

• This scheme will support in setting up of sufficient charging stations with help of all stakeholders such as Govt agencies, PSE (Public Sector Enterprises) & Industries to boost confidence amongst EV users.
• These charging infrastructures/stations will be established as per Ministry of Power notifications named ““Charging Infrastructure for Electrical Vehicles – Guidelines and Standards”. Notification no is 12/02/2018-EV dated 14^th Dec, 2018.
• It is also proposed to provide one slow charger for each e-bus & 1 fast charger every 10 electric buses to funded under this scheme for charging purpose.

1. Administration of scheme: 

• Knowledge partners/technical expertise & other logistic support shall be provided for smooth operation and implementation of the scheme.
• An awareness program which includes Information, Education & communication (IEC) shall be undertaken by Department of Heavy Industry etc through business meets/seminars etc.
• Projects sanctioned under FAME I shall continue as per terms & conditions issued time to time.
• The responsibility of implementation of this scheme will be with Department of Heavy Industry.