The Union government initiated the FAME India Phase 2 program for vehicles. The Indian authorities approved the second phase of the FAME initiative with a budget of Rs. 10,000 Crore covering a 5-year duration, which commenced on 1st April 2019. From the overall financial backing, approximately 86 percent of the budget is earmarked for Demand Incentives to stimulate the adoption of Electric Vehicles (xEVs) nationwide.
The government is focusing on boosting incentives to encourage e-mobility and curb pollution levels across the country. Under this program, vehicles are fully electric, powered by rechargeable batteries, and produce zero emissions. Furthermore, the authorities will also work on developing the necessary charging infrastructure to support these vehicles.
What is the FAME India Phase 2 Program
The second phase of the FAME India program aims to boost demand by supporting 7,000 Electric Buses (e-buses), 5 lakh Electric Three-Wheelers (e-3W), 55,000 Electric Four-Wheeler Passenger Cars (including Strong Hybrids) (e-4W), and 10 lakh Electric Two-Wheelers (e-2W). However, these figures may fluctuate based on the market uptake of various xEV categories, as provisions for inter-segment and intra-segment flexibility exist. Additionally, the scheme supports the expansion of charging infrastructure for electric vehicles.
Who Qualifies for Subsidies Under FAME India Phase 2
Vehicles equipped with advanced chemistry batteries that satisfy minimum technical standards and are registered as "Motor Vehicles" under CMVR are eligible for incentives. With a focus on providing affordable and eco-friendly public transit, the program primarily targets vehicles used for public transport or those registered commercially within the e-3W, e-4W, and e-bus categories. Privately registered e-2Ws are also included in the scheme as part of the mass-market segment.
Overview of FAME India Phase 1
The central government previously launched the first phase of the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME India) on 1st April 2015. This initial phase concluded on 31st March 2018, leading into the second phase. The FAME program originated from the 2011 National Mission on Electric Mobility and the 2013 National Electric Mobility Mission Plan 2020. The initiative seeks to promote the adoption of reliable, cost-effective, and efficient electric and hybrid vehicles (xEVs).
The program operates under a Demand Incentive Disbursement Mechanism. Incentive rates are defined for various vehicle categories, including Mild Hybrid, Strong Hybrid, Plug-in Hybrid, and Pure Electric technologies, based on battery specifications. It is managed by the National Automotive Board under the Department of Heavy Industry and is classified as a Direct Benefit Transfer (DBT) scheme in an in-kind format.
The FAME India Phase 2 Portal
To enhance efficiency and transparency through digital monitoring,