Fame India Phase-II

• 28 Jul 2023

Source: PIB

Why in News?

Recently, the Ministry of State for Heavy Industries highlighted the developments of Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME India) Scheme Phase-II in a written reply to the Lok Sabha.

• The FAME India Scheme, aimed at promoting electric vehicles (EVs) in the country, has taken significant strides to incentivize the adoption of EVs and expand the electric mobility infrastructure.

What is FAME India Phase-II?

• Background:
  • FAME India is a part of the National Electric Mobility Mission Plan. Main thrust of FAME is to encourage electric vehicles by providing subsidies.
  • Two phases of the scheme:
    • Phase I: started in 2015 and was completed on 31st March 2019.
  • The scheme covers Hybrid & Electric technologies like Mild Hybrid, Strong Hybrid, Plug in Hybrid & Battery Electric Vehicles.
• FAME India Phase-II:
  • Duration: Five years from April 1, 2019.
    • Budgetary support: Rs. 10,000 crores.
    • Target: Encouraging the adoption of 7,090 eBuses, 5 lakh e-3 Wheelers, 55,000 e-4 Wheeler Passenger Cars, and 10 lakh e-2 Wheelers.
    • Focus: Electrification of public and shared transportation.
• Steps Taken to Promote Electric Vehicles:
  • Expanding EV Charging Network:
    • Under Phase-I: 520 charging stations/infrastructure sanctioned.
    • Phase-II: Sanctioning of 2,877 Electric Vehicle Charging Stations in 68 cities across 25 States/UTs and 1,576 charging stations across 9 Expressways and 16 Highways.
    • Capital Subsidy for OMCs: Rs. 800 crore sanctioned for the establishment of 7,432 electric vehicle public charging stations. 
  • Government Incentives and Subsidies for Electric Vehicles:
    • FAME India Scheme Phase-II:
      • Upfront reduction in the purchase price of EVs for buyers.
    • Production Linked Incentive (PLI) Scheme for Automotive Sector:
      • Budgetary outlay of Rs. 25,938 crores to support domestic manufacturing of vehicles, including electric vehicles.
    • PLI Scheme for Advanced Chemistry Cell (ACC):
      • Budgetary outlay of Rs. 18,100 crore to establish a competitive ACC battery manufacturing setup in the country.
  • Reduced GST and Exemptions:
    • GST on EVs reduced from 12% to 5%.
    • GST on chargers/charging stations for EVs reduced from 18% to 5%.
  • Exemptions and Waivers:
    • Battery-operated vehicles are exempt from permit requirements and given green license plates.
    • Ministry of Road Transport and Highways (MoRTH) advised states to waive road tax on EVs to reduce initial cost.
  • Awareness Initiatives Promoting E-Mobility:
    • Various initiatives to create awareness about EVs in colleges/universities and institutions across India.
    • Collaboration with International Centre for Automotive Technology (ICAT) for EV awareness programs.