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Comprehensive Overview of the FAME-India Scheme: Phases I and II

Promoting Sustainable Transport through Electric and Hybrid Vehicle Adoption

Comprehensive Overview of the FAME-India Scheme: Phases I and II

  • 21 Sep, 2024
  • 342

Introduction to the FAME-India Scheme

The FAME-India Scheme, which stands for Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India, is a significant government initiative introduced in 2011. Its primary goal is to foster the use of electric and hybrid vehicles across the nation. By offering various incentives to both manufacturers and consumers, the scheme aims to diminish reliance on fossil fuels, reduce air pollution, and curb the adverse effects of climate change.

Objectives of the FAME-India Scheme

The main objectives of the FAME-India Scheme include:

  • Enhancing the adoption of electric and hybrid vehicles by making them more affordable and easily accessible.
  • Lowering production costs for manufacturers through subsidies.
  • Providing financial incentives to buyers of electric and hybrid vehicles.
  • Establishing a comprehensive and efficient charging infrastructure across the country.

Structure and Phases of the FAME-India Scheme

FAME-India is implemented in multiple phases:

Phase I

This phase was concentrated on creating demand, developing a technology platform, initiating pilot projects, and setting up charging infrastructure. By the end of Phase I, 427 charging stations had been established.

Phase II

With a substantial budget of ₹10,000 crores, Phase II focuses on the electrification of public and shared transportation. It aims to incentivize the adoption of electric two-wheelers, four-wheelers, e-rickshaws, and e-buses. This phase also prioritizes the expansion of charging infrastructure.

Incentives Offered Under the Scheme

The FAME-India Scheme provides a variety of incentives based on vehicle category and battery specifications. For instance:

  • Registered electric two-wheelers can receive an incentive of ₹20,000 each.
  • Electric four-wheelers, priced up to ₹15 lakhs, can avail incentives of ₹1.5 lakhs.
  • The scheme also extends incentives to hybrid vehicles and e-rickshaws.

Charging Infrastructure Development Plans

The government has outlined plans to establish 2,700 charging stations in major metropolitan areas, smart cities, hilly states, and cities with populations exceeding one million. The proposed layout for grid measurement is a 3 km x 3 km grid, with highway charging stations planned every 25 km.

Challenges Faced by the Scheme

Despite its ambitious goals, the FAME-India Scheme faces several challenges. One major challenge is generating adequate demand for electric vehicles to prevent oversupply and potential manufacturer losses. Additionally, there are concerns regarding the scheme's effectiveness in promoting smaller electric vehicles like scooters, as the incentives are predominantly linked to battery size.

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