FAME INDIA SCHEMES (Syllabus: GS Paper 2 – Govt schemes)

News-CRUX-10     6th February 2024        
output themes

Context:The Ministry of Heavy Industries (MHI) has stated that the total utilization of the FAME-II subsidy fund electric vehicles (EVs) till January 31 for FY24 was ~1,980.83 crore, which is only 38 per cent of its total allocation.


Fame India schemes

  • About:The FAME India Scheme is a government subsidy scheme under the National Electric Mobility Mission Plan (NEMMP). FAME stands for Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India . 
  • Objectives:To encourage the adoption of electric and hybrid vehicles by offering upfront incentives on purchase.
  • Nodal ministry: The Ministry of Heavy Industries.

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.

output themes