The Faster Adoption and Manufacturing of Electric and Hybrid Vehicles in India (FAME India) Scheme has achieved a significant milestone with Rs. 5790 crore disbursed to electric vehicle manufacturers as of January 31, 2024. This subsidy amount is linked to the sale of 13,41,459 electric vehicles under Phase II of the initiative.
FAME India Phase II: Boosting electric mobility
Launched in April 2019 with a budgetary allocation of Rs. 10,000 crore, FAME India Phase II focuses on accelerating the electrification of public and shared transportation sectors. The scheme incentivizes the purchase of electric two-wheelers, three-wheelers, four-wheelers, and buses by providing upfront reductions in vehicle prices.
Government support for charging infrastructure
In addition to manufacturer subsidies, FAME India Phase II prioritizes the development of charging infrastructure. The Ministry of Heavy Industries has sanctioned the establishment of 2,877 electric vehicle charging stations in 68 cities across 25 States/UTs. Additionally, 1576 stations are planned along major expressways and highways. To further bolster charging accessibility, the government has approved Rs. 800 crore for the creation of 7,432 public charging stations by Oil Marketing Companies.
A multi-pronged approach for a greener future
The FAME India Scheme is one of several initiatives undertaken by the government to promote electric vehicle adoption and combat air pollution. Other measures include:
Production Linked Incentive (PLI) Scheme for Automotive Sector: This scheme offers financial incentives to domestic manufacturers of electric vehicles.
Reduced GST Rates: The government has reduced the Goods and Services Tax (GST) on electric vehicles and charging stations, making them more affordable for consumers.
Exemptions and Incentives for EV ownership: Electric vehicles benefit from green license plates, exemptions from permit requirements, and potential waivers on road tax depending on the state.
Raising awareness and building momentum
The government is actively promoting electric vehicle awareness through collaborations with educational institutions and industry bodies. International Centre for Automotive Technology (ICAT) has organized conferences and seminars to educate the public about the benefits of e-mobility.
The success of FAME India Phase II demonstrates the government’s commitment to fostering a cleaner transportation ecosystem. With continued support for manufacturers and infrastructure development, India is well-positioned to accelerate its electric vehicle revolution.
