FAME-India Scheme

FAME-India Scheme

  1. Introduction
  2. Background
  3. Focus Areas
  4. Aim
  5. Phase2
  6. Target
  7. Impact
  8. Automobile sector
  9. Need of hour

Introduction

The Department of Heavy Industry is administering the scheme “Faster Adoption and Manufacturing of Electric and Hybrid Vehciles in India”, popularly known as FAME India scheme since 01st April 2015.

Background:

  • 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.

FAME focuses on 4 areas i.e.

  • Technology development,
  • Demand Creation,
  • Pilot Projects and
  • Charging Infrastructure.

Aim

  • To promote manufacturing of electric and hybrid vehicle technology and to ensure sustainable growth of the same, Department of Heavy Industry is implementing FAME-India Scheme Phase – I [Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India] from 1st April 2015.
  • The scheme was initially up to 31st April 2017, has been extended up to 31st March 2019 or till Notification of FAME-II, whichever is earlier.

FAME-India Scheme

FAME-India Scheme Phase – II

Aims to boost electric mobility and increase the number of electric vehicles in commercial fleets.

Target

  • The outlay of ₹10,000 crore has been made for three years till 2022 for FAME 2 scheme.
  • The government will offer the incentives for electric buses, three-wheelers and four-wheelers to be used for commercial purposes.
  • Plug-in hybrid vehicles and those with a sizeable lithium-ion battery and electric motor will also be included in the scheme and fiscal support offered depending on the size of the battery.

How will FAME 2 scheme help improve charging infrastructure?

  • The centre will invest in setting up charging stations, with the active participation of public sector units and private players.
  • It has also been proposed to provide one slow-charging unit for every electric bus and one fast-charging station for 10 electric buses.
  • Projects for charging infrastructure will include those needed to extend electrification for running vehicles such as pantograph charging and flash charging.
  • FAME 2 will also encourage interlinking of renewable energy sources with charging infrastructure.
  • The scheme proposes to give a push to electric vehicles (EVs) in public transport and
  • It seeks to encourage adoption of EVs by way of market creation and demand aggregation.

Automobile Sector

  • 100% FDI by automatic route is permitted in the automobile sector.
  • Further, the sector is deregulated, both private sector and public sector are free to carry out investment in the automobile sector, including for manufacturing of Electric Vehicles and E-Buses.

Need of the hour

  • India needs auto industry’s active participation to ease electric mobility transition.
  • The auto and battery industries could collaborate to enhance customer awareness, promote domestic manufacturing, promote new business models, conduct R&D for EVs and components, consider new business models to promote EVs.
  • Government should focus on a phased manufacturing plan to promote EVs, provide fiscal and non-fiscal incentives for phased manufacturing of EVs and batteries.
  • Different government departments can consider a bouquet of potential policies, such as congestion pricing, ZEV credits, low emission/exclusion zones, parking policies, etc. to drive adoption of EVs.