Fund increased under FAME Scheme

• The Centre has said subsidies under the second phase of FAME Scheme will be eligible for e-vehicles sold till March 31, 2024, or till the time funds are made available. The Ministry of Heavy Industries has announced that the outlay of the Faster Adoption and Manufacturing of Electric Vehicles in India (FAME-II) programme has been enhanced from Rs 10,000 crore to Rs 11,500 crore in a bid to push clean mobility in the country.

ABOUT THE FAME SCHEME

• The National Electric Mobility Mission Plan (NEMMP) 2020 is a National Mission document providing the vision and the roadmap for the faster adoption of electric vehicles and their manufacturing in the country.
• As part of the NEMMP 2020, the Department of Heavy Industry (under the Ministry of Heavy Industries & Public Enterprises) formulated a Scheme viz. Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME India) Scheme in 2015.
• The objective of the FAME India scheme is to promote manufacturing of electric and hybrid vehicle technology and to ensure sustainable growth of the same.
• The scheme encourages adoption of Electric and hybrid vehicles by offering upfront incentives on purchase of Electric vehicles and establishing a necessary charging Infrastructure for electric vehicles.
• The scheme aims at addressing the issue of environmental pollution and fuel security.

PHASE-I

• The Phase-I of this Scheme was initially launched for a period of 2 years, commencing from 1st April 2015, which was subsequently extended up to 31st March 2019.
• The 1st Phase of FAME India Scheme was implemented through four focus areas namely (i) Demand Creation, (ii) Technology Platform, (iii) Pilot Project and (iv) Charging Infrastructure.

PHASE-II

• Phase-II of FAME India Scheme is being implemented for a period of 3 years from 2019.
• This phase focuses on supporting electrification of public & shared transportation.
• In addition, the creation of charging infrastructure is also supported for electric vehicles.