The FAME India, an acronym for Faster Adoption and Manufacture of (Hybrid and) Electric Vehicles, is an incentive scheme which was proposed to promote the use of electric and hybrid vehicles in the country.
The main objective of the scheme is to make the people aware about the use of electric mobility. It gives financial incentives for enhancing the electric vehicle production and creation of electric transportation infrastructure.
Launched by the Ministry of Heavy Industries and Public Enterprises in 2015, the FAME India scheme has been operating at a faster pace.
FAME-1 which was proposed on 2015 with an outlay of about Rs 895 crore, promoted approximately 2 lakh Electric Vehicles till July 2018.
Adapting to the current phase- FAME-2
- The Phase-2 of the FAME Scheme proposes to give a push to the Electric Vehicle segment of the industry. It seeks to encourage the adoption of EVs that have been developed and manufactured indigenously.
- FAME India Phase 2 has an expected total outlay of about Rs 1000 Crores for 3 years from April 2019 to 2022.
- The current scheme will cover the buses using EV Technology, Plug-in hybrid and strong hybrid four wheelers, electric three-wheelers, and electric two-wheelers. This will save considerable amounts of energy and CO2 associated with it.
- Vehicles under this scheme can save up to 5.4 million tonnes of oil equivalent.
What will the automotive sector gain?
Following are the incentives which would be provided to the various categories of the vehicles under FAME-2-
- Electric two-wheelers: 10 lakh registered electric two-wheelers will be provided incentives of Rs 20,000 each.
- E-rickshaws: incentives to 5 lakh e-rickshaws of Rs 50,000 each.
- Electric four wheelers: Incentive of Rs 1.5 lakh each to 35,000 electric four-wheelers with the ex-factory price of up to Rs 15 lakh.
- Hybrid four wheelers: Incentive of Rs 13,000 each to 20,000 strong hybrid four-wheelers with the ex-factory price of up to Rs 15 lakh.
- E-buses: support to 7,090 e-buses with an incentive of up to Rs 50 lakh each having an ex-factory price of up to Rs 2 crore.
The FAME India being a part of the National Electric Mobility Mission Plan, focuses on establishing the electric charging infrastructure and a policy framework for more than 30% electric vehicles by 2030.