FAME INDIA SCHEME (Syllabus: GS Paper 2 – Govt Schemes)

Context: Recently, the government has been contemplating the implementation of stricter norms to promote the use of local components, aiming to enhance domestic manufacturing of electric vehicles (EVs).

• This move comes in response to instances of companies violating the phased manufacturing program (PMP) norms by assembling vehicles with imported parts.

FAME India Scheme

• About: FAME (Faster Adoption and Manufacturing of Electric Vehicles) India is a part of the National Electric Mobility Mission Plan.
• The main thrust of FAME is to encourage electric vehicles by providing subsidies.
• Implementing agency: The Department of Heavy Industry has been administering the scheme “Faster Adoption and Manufacturing of Electric and Hybrid Vehicles in India”, popularly known as the FAME India scheme since 01st April 2015.
• Objective: Promotion of Electric and hybrid vehicles in the country by offering upfront Incentives on the purchase of Electric vehicles and by establishing charging Infrastructure for electric vehicles.

Salient Features of the FAME Scheme – 2

• This scheme is the expanded version of the present scheme titled ‘FAME India-1 which was launched on 1st April 2015, with a total outlay of Rs. 895 crores.
• The target is to support 10 Lakhs e-2Wheeler, 5 Lakhs e-3 Wheelers, 55000 4 Wheelers, and 7000 Buses.
• Under the scheme of FAME-II, the demand incentive for e-2W has been increased to Rs. 15,000/KWh from Rs. 10,000/KWh with an increase in cap from 20% to almost 40% of the cost of the vehicle to increase the adoption of e-2W.
• The phase II of the FAME-India Scheme has been extended for a period of two years after 31st March 2022.
• Benefits: The scheme will help in addressing the issue of environmental pollution and fuel security.