FAME India Scheme: Main Features Explained

IAS Prelims 2023

As a part of the National Electric Mobility Mission Plan 2020 (NEMMP 2020), the Government of India formulated a scheme namely Faster Adoption and Manufacturing of Hybrid & Electric vehicles in India [FAME-India] for a period of 6 years till 2020, wherein it is intended to support the hybrid /electric vehicle market development and its manufacturing eco-system to achieve self-sustenance at the end of the stipulated period.

The scheme is one of the green initiatives of the Government of India, which will be one of the biggest contributors in reducing pollution from road transport sector in near future.

The scheme has 4 focus areas i.e. Technology Development, Demand Creation, Pilot Projects and Charging Infrastructure.

Market creation through demand incentives is aimed at incentivizing all vehicle segments i.e. 2-Wheelers, 3-Wheeler Auto, Passenger 4-Wheeler Vehicles, Light Commercial Vehicles and Buses.

The demand incentive is available for buyers (end users/consumers) in the form of an upfront reduced purchase price to enable wider adoption.

The Phase I of FAME India scheme was originally for a period of 2 years i.e. FY   2015-16 and FY 2016-17 commencing from 1st April 2015.

However, the Phase-I has been  extended  further  for  a  period  of  6 months  beyond 31st March 2017, till 30th September 2017, with slight modification to the extent of discontinuation of the available benefits to the Mild Hybrid technology under the scheme with effect from 1stApril 2017.

It has been provided in the scheme that based on the outcome and experience gained in this Phase 1, the scheme shall be reviewed appropriately with inputs from stakeholders and shall be considered for implementation post Phase 1, with appropriate allocation of funds in the future.

Under FAME India Scheme, 148275 electric/hybrid vehicles (xEVs) have been given direct support by way of demand incentives amounting to Rs. 192.56 Crore (Approx) since its launch on 1st April 2015 and till 30th June 2017. This has resulted in approximately fuel saving of 13553917 litre and CO2 reduction of 33971052 Kg.