FAME Scheme - Faster Adoption and Manufacturing of Electric & Hybrid Vehicles

Pollution from vehicle emissions has significantly increased in recent years. To reduce pollution caused by diesel and petrol-operated vehicles and to promote electric or hybrid cars in India, the Central Government launched the Fame India Scheme in 2015. 

The FAME India Scheme is a government subsidy scheme under the National Electric Mobility Mission Plan (NEMMP). It is a government-backed scheme that aims to promote the adoption of electric vehicles in India. Continue reading the article to know the different benefits of the scheme, along with its application process and objective.

The Fame India scheme is an incentive scheme that encourages the adoption of electric and hybrid vehicles. The full form of the Fame India scheme is "Faster Adoption and Manufacturing of Electric and Hybrid Vehicles in India."

Manufacturers and infrastructure providers of electric vehicles receive this incentive through subsidies. The Fame India scheme is a part of the National Electric Mobility Mission Plan and 

was launched by the Ministry of Heavy Industries and Public Enterprises.

The Fame India Scheme operates in two phases. These are,

• Phase I: The first phase of the Fame India Scheme started in 2015 and was functional till 31st March 2019.

• Phase II: The second phase of this scheme started in April 2019 and will continue till 31st March 2024

The latest updates of the FAME scheme focus on different key areas. Here’s a breakdown to some of the latest news related to the scheme:

• The government is working on FAME-3 and expects to finalise it in one or two months. However, the exact timeline for its rollout remains undisclosed. 
• The Electric Mobility Promotion Scheme (EMPS) 2024 will be extended until FAME-3 is finalised. The EMPS was launched in April and was extended till September 30. 
• An inter-ministerial group is working on the inputs received for the scheme. 
• Efforts are being made to address the issues in the first two phases of the scheme. 
• Electric 2W, and 3W companies will likely face retest for the FAME-III scheme.

The FAME India Scheme grants financial incentives that reduce the upfront purchase cost of electric and hybrid vehicles. Here is how it works:

• Incentives for Vehicles: With this subsidy, buyers enjoy reduced costs for the car itself.
• Charging Infrastructure Development: Grants are provided to set up charging stations so electric vehicle users can easily find them.
• Promotion of EV Manufacturing: Support is extended to manufacturers for the domestic production of electric vehicles and their components.
• Public Awareness Campaigns: The general public should be educated in various media about the benefits associated with the use of electric cars.

The primary objectives of Fame India scheme are listed below.

• This scheme encourages manufacturers and related providers to manufacture more electric vehicles nationwide.
• Its goal is to reduce vehicular emissions and air pollution levels within the country.
• This scheme also aims to establish an electric charging infrastructure.
• In addition, Fame India Scheme targets to convert 30% of total transportation into electric vehicles by 2030.
• The scheme aims to reduce the country's reliance on fossil fuels. 
• The scheme aims to address the issue of vehicular emissions. 
• The scheme aims to promote sustainable transportation solutions. 
• The scheme aims to provide affordable and environmentally friendly public transportation options. 
• The scheme aims to establish charging infrastructure for electric vehicles. 
• The scheme supports research and development activities. 
• The scheme incentivises both manufacturers and consumers to adopt electric and hybrid vehicles. 

As stated earlier, the Fame India Scheme is operational in Phase I and II. Here, the features of these phases are discussed separately.

Features of Phase I of the FAME India Scheme:

FAME India Phase I had four focus areas - technological development, demand generation, pilot project and charging infrastructure components. The phase was available up to March 31, 2019, with a budget outlay of Rs 895 Cr. Achievements under FAME India –

• About 2.8 lakh xEVs supported with total demand incentives of approximately Rs. 360 Crore. 
• 425 electric and hybrid buses were deployed across various cities in the country with a Government incentive of about Rs. 280 crores. 
• 520 Charging Stations/ Infrastructure for Rs. 43 crores (approx.)

Features of Phase II of Fame India Scheme

• The second phase of Fame India Scheme stresses on electrification of public transportation and shared transportation.
• This phase gets budgetary support of ₹ 10,000 crores.
• Through this scheme, the concerned department aims to provide incentives to various categories of vehicles. These are,
  • Electric Two-wheelers: 10 lakh registered electric two-wheelers will get an incentive of ₹ 20,000 each.
  • Electric Four-wheelers: 35,000 electric 4-wheelers with ex-factory price of ₹ 15 lakh will get an incentive of ₹ 1.5 lakh each.
  • Hybrid Four-wheelers: Through this scheme, the Government will provide ₹ 13,000 - ₹ 20,000 as an incentive to hybrid 4-wheelers with ex-factory price of ₹ 15 lakh.
  • e-rickshaws: 5 lakh e-rickshaws (each) can avail ₹ 50,000 as incentives.
  • e-buses: Nearly 8000 e-buses with a maximum ex-factory price of ₹ 2 crores will receive an incentive of ₹ 50 lakh each.
• Under the second phase of Fame India Scheme, the Government is hopeful of establishing 2700 charging stations in metros, smart cities, hilly states, million-plus cities across the country. The grid measurement will follow a 3 km x 3 km layout.
• The Government aims to cover highways as well and establish charging stations on both sides of the road with a gap of 25 km between two consecutive stations.

The Fame India scheme offers the following benefits:

• Issues related to environmental and fuel conservation will be significantly reduced.
• Vehicles from different segments will receive subsidy benefits accordingly.
• Citizens can avail themselves of eco-friendly public transportation.
• This scheme will allow individuals to reap the benefits of renewable energy sources through charging systems.
• Enabling charging stations nearby further encourages individuals to opt for electric vehicles.
• Air pollution is cut down, and the fresh atmosphere is fresh.
• A way of reducing the operating expenditures of motorists’ vehicles.
• Development of fast charging infrastructure for EVs.
• Increased manufacturing and employment opportunities within the country’s boundaries in the EV domain.
• Encouraging technical revolution about electric vehicle technology.
• Diminished reliance on fossil fuels.
• Economic enticements to clients and producers.

Applicants must first be eligible to avail of the benefits offered under the Fame India Scheme. The following section covers the eligibility criteria for this scheme. Read along!

The benefits of the Fame India scheme are available for the following individuals:

• Electric Vehicle Manufacturers: Manufacturers of electric automobiles, buses, scooters, and other kinds of electric transport are eligible for the FAME scheme.
• Electric Vehicle Infrastructure Providers: These providers are crucial in enabling large-scale adoption of electric vehicles by building and maintaining necessary infrastructure such as charging points or battery swapping facilities.
• State Government and UTs: They play vital roles in implementing the Fame India Scheme and work with the central government to develop policies and regulations that support electric mobility.
• Research Institutions: These institutions contribute towards the Fame India Scheme by conducting studies and research on electric mobility, battery technology, and sustainable transportation solutions. 
• Buyers: The end users of electric vehicles - including individual consumers and businesses - are buyers who can take advantage of the Fame India Scheme incentives.
• Focused Startups: Startups focusing on electric vehicles and clean energy can get support under the Fame India Scheme.

Now that you know the eligibility criteria of this scheme, let's move on to learn about the application process.

To avail of the benefits of Fame India Scheme's latest phase, i.e. Phase II, applicants must follow the steps mentioned below.

• Step 1 - Visit the official website of the Department of Heavy Industries, Ministry of Heavy Industries, and Public Enterprises.
• Step 2 - Click on the Fame India Phase II option.
• Step 3 - After that, an application form will appear on your screen.
• Step 4 - Fill out that form with relevant information and follow the instructions to complete the procedure.

Note: Applicants must follow the instructions given by the concerned department. Further, they must remember that there is no other way of applying for the Fame India Scheme.

The “Fame India Scheme” is a crucial step in India's sustainable development because it promotes electric mobility. As a result, this initiative hopes to decrease greenhouse gas emissions and ensure enough energy supply for various needs. Now that you know every detail of the Fame India Scheme, you can opt for electric vehicles to ensure a greener and cleaner future for yourself and upcoming generations.