FAME India Phase-II Scheme

FAME India Phase-II Scheme

News: Recently, The Parliamentary Standing Committee on Industry has suggested important recommendations regarding the extension and enhancement of the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME India) Scheme Phase-II.

Key Recommendations:
• Extend phase-II scheme’s deadline by at least 3 more years. (Currently it ends on 31st March, 2024)
• The committee suggests restoring the subsidy on electric two-wheelers, which was reduced in June 2023.
• The ministry should increase the number of electric vehicles supported in the four-wheelers category and include private electric four-wheelers in the FAME-II Scheme.
• Establish dedicated manufacturing hubs and industrial parks for batteries, cells, and EV auto components.
• Allocate more funds to Bharat Heavy Electricals Limited (BHEL) to facilitate popularizing EV mobility.
• Incentivize individual investors in charging stations. Women SHG’s and co-operative societies need to be assisted to open and operate charging stations.

What is the FAME India scheme?
• The FAME India (Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India) scheme was launched by the Central Government in 2015 to reduce pollution caused by diesel and petrol-operated vehicles and to promote manufacturing of electric and hybrid vehicles.

Phase I of the scheme:
• Phase I of the FAME India Scheme started in 2015 and was functional till 31st March 2019 with a budget outlay of Rs 895 Crore.
• It had four focus areas - technological development, demand generation, pilot project, and charging infrastructure components.
• About 2.8 lakh xEVs were supported with total demand incentives of approximately Rs. 360 Crore. 425 electric and hybrid buses were deployed across various cities in the country with a Government incentive of about Rs. 280 crores. 520 Charging Stations/ Infrastructure for Rs. 43 crores (approx.) were sanctioned.

Phase II of the scheme:
• Phase II of this scheme started in April 2019 and will continue till 31st March 2024.
• It was approved with an outlay of Rs. 10,000 crores for a period of five years commencing from April 01, 2019.
• In addition, creation of charging infrastructure is also supported under the Scheme. The Ministry of Heavy Industries had sanctioned 2,877 Electric Vehicle Charging Stations in 68 cities across 25 States/UTs and 1576 charging stations across 9 Expressways and 16 Highways under Phase II of FAME India Scheme.

What are the other Government initiatives to promote EV sector?
• Battery Swapping Policy
• National Electric Mobility Mission Plan (NEMMP).
• National Mission on Transformative Mobility and Battery Storage
• Special E-Mobility Zone - The government intends to create electric car mobility zones. Only electric cars or equivalent vehicles will be authorised to operate in the administration-designated zones.
• The Production Linked Incentive (PLI) scheme, which provides incentives for the manufacturing of electric vehicles and components.
• Vehicle Scrappage Policy
• The Ministry of Housing and Urban Affairs has also amended the Model Building Bye-laws, 2016 (MBBL) to mandate setting aside 20% of the parking space for EV charging facilities in residential and commercial buildings.
• E-Amrit Portal - e-AMRIT (Accelerated e-Mobility Revolution for India\'s Transportation) portal for creating awareness about electric mobility in India. The portal aims to serve as a ‘one-stop site’ to provide all the information related to the adoption of electric vehicles in India. e-AMRIT is the result of a joint initiative between NITI Aayog and the UK Government.
• EV30@30 campaign