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Fame India Scheme

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Bharathi Pradeep
Bharathi Pradeep
Editor at Bharathi covers topics on Competitive exams, How To guides, Current exams, Current Affairs, Study Materials, etc. Follow her on social media using the links below.

FAME (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) is an initiative of the Government of India to encourage the development of electric vehicles. This is important in light of global efforts to address climate change. The Government of India has set up Rs 10,000 crores for the scheme’s second phase. This initiative was created in order to accomplish the objectives of the National Electric Mobility Mission Plan (NEMMP). 

The Fame India Scheme comprises two parts. These are as follows:

  • Phase I: The first phase of the Fame India initiative began in 2015 and ended on March 31, 2019.
  • Phase II: The second phase of this initiative began in April 2019 and ended on March 31, 2022.

Objectives of the Fame India Scheme

  • This initiative supports electric vehicle manufacturers and related sources to produce a greater number of electric vehicles in the country.
  • Its purpose is to minimize the country’s vehicle emissions and air pollution levels.
  • This plan also includes the development of electric charging infrastructure.
  • Further, the Fame India Scheme aims to shift 30% of overall transportation to electric vehicles by 2030.
  • The scheme’s primary aim is to reduce fuel demand by replacing diesel/petrol vehicles with electric vehicles.
  • Another aim of the initiative is to make these vehicles available to the general public at fair prices.
  • The Ministry of Heavy Industries envisions India as a global leader in the electric vehicle manufacturing industry. 
  • The DHI has set the aim to increase the private usage of electric two-wheeler vehicles in urban areas.

Features of Phase 1 of the Fame India Scheme:

1. The first phase was conducted by the relevant authorities by focusing on four main areas. 

  • Demand Creation 
  • Technology Platform
  • Pilot Project 
  • Charging Infrastructure 

2. The government has provided support for the installation of 500 charging stations as part of the FAME-India Scheme’s Phase-I. About 230 of the roughly 500 charging stations have been put in place.
3. The government had allocated 895 crores for Phase I operations. Nearly 2.8 lakh electric vehicles were sponsored in this country with a total of 359 crores.

Features of Phase 2 of the Fame India Scheme

1. The second phase of the Fame India Scheme focuses on electrifying public transit and sharing transport.
2. This phase is funded with a budget of 10,000 crores.
3. The concerned department aims at giving incentives to various categories of vehicles under this initiative. These are 

  • Electric two-wheelers: A 20,000 incentive would be given to each registered electric two-wheeler.
  • Electric four-wheelers: 35,000 electric four-wheelers with an ex-factory price of 15 lakh will be eligible for a 1.5 lakh incentive each.
  • Hybrid Four-wheelers: Under this initiative, the government would provide an incentive of 13,000 – 20,000 to hybrid four-wheelers with an ex-factory price of 15 lahks.
  • e-rickshaws: Each of the 5 lakh e-rickshaws is eligible for 50,000 incentives.
  • e-buses: A 50 lakh incentive would be given to around 8000 e-buses with a maximum ex-factory price of 2 crores. 

4. The government is expected to install 2700 charging stations in metros, smart cities, hilly states, and million-plus cities throughout the country under the second phase of the Fame India Scheme. The grid measurement will be 3 km x 3 km in layout.
5. The government intends to cover highways as well, with charging stations on both sides of the road and a distance of 25 kilometres between two consecutive stations.

Benefits of the Fame India Scheme

  • Environmental and fuel conservation-related problems will be greatly diminished.
  • Vehicles from various sectors will be eligible for various subsidies.
  • Citizens have access to environmentally friendly public transportation.
  • Through charging systems, this scheme will enable individuals to realize the benefits of renewable energy sources.
  • The installation of nearby charging stations further persuades people to choose electric automobiles.

Other Steps taken by the Government for the Adoption of Electric Vehicles:

  • In order to lower battery prices in the nation, the government approved a Production Linked Incentive (PLI) plan on May 12, 2021, for the production of Advanced Chemistry Cells (ACC). Electric vehicle costs will decrease as battery prices decline.
  • GST for electric vehicles has been lowered from 12 to 5 percent, and GST for chargers and charging stations has been lowered from 18 to 5 percent.
  • Battery-powered vehicles will receive green license plates and be exempt from permission procedures, according to a statement from the Ministry of Road Transport & Highways (MoRTH).
  • In a statement, MoRTH urged states to exclude EVs from road taxes, which will assist lower the initial cost of EVs.
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Bharathi Pradeep
Bharathi Pradeep
Editor at Bharathi covers topics on Competitive exams, How To guides, Current exams, Current Affairs, Study Materials, etc. Follow her on social media using the links below.

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