FAME (Faster Adoption & Manufacturing of Electric Vehicles) Scheme

Aim: For promoting electric mobility, by boosting adoption of electric and hybrid vehicles in India.

Objectives:

• • To increase demand of electric vehicles by making them affordable and accessible.
  • To achieve target of 30% electric vehicles by 2030.
  • To mitigate climate change by reducing pollution.
  • To reduce dependence on fossil fuels.

Features:

• • The scheme was launched in 2015, as a part of National Mission on Electric Mobility.
  • Implementation of the scheme is done through following verticals:
    • Demand Incentives
    • Establishment of network of charging stations
    • Administration including publicity, IEC (Information, Education, Communication) activities etc.
  • A Project Implementation and Sanction Committee, headed by Secretary is responsible for monitoring of the scheme.
  • Phases:

Features of FAME Phase 2:

• • Focus to push adoption of Evs in commercial segment by:
    • Supporting 10 lakh e-2W, 5 lakhs e-3W, 55000 4Ws and 7000 buses.
    • Scheme also covers privately owned registered e-2W.
    • A cap on incentive for electric two-wheelers at 15% of ex-factory price. (present-40%)
  • About 86% of total budgetary support to create demand for Evs in the economy.
  • Eligibility for incentives: vehicles fitted with advanced chemistry battery, meeting minimum technical requirements and registered as motor vehicle as per CMVR.
  • Expanding the charging infrastructure by establishing around 2700 charging stations across the country.
    • Atleast one in grid of 3km x 3km in cities.
    • At every 25km on both side of highways connecting major city clusters.

Critical Observation by Parliamentary Standing Committee:

• • Charging Infrastructure not at optimum level: Out of 22000 charging stations sanctioned under FAME II, only 7432 have been setup.
  • Frequent policy changes in the EV sector create uncertainty and impact market confidence.
  • The cost of ownership of electric vehicles is higher compared to internal combustion engine vehicles.

Recommendations by parliamentary committee:

• • The Parliamentary Standing Committee on Industry recommends extending the FAME-II Scheme by at least three years beyond its current deadline.
  • Committee recommended to incentivize individual investor, women SHGs, cooperative societies as well as utilizing the premises of government institutions and PSUs to establish charging infrastructure.
  • The committee suggests expanding FAME-II to include private electric four-wheelers, subject to vehicle cost and battery capacity limitations.
  • The committee recommends reducing GST on batteries to reduce the cost of vehicles.