In this article, we will look into another popular scheme called Fame India Scheme. Pollution from automobile emissions has significantly increased in recent years. The Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME India) Scheme was introduced by the Central Government in 2015 to minimize pollution generated by diesel and gasoline-operated vehicles and to encourage the production of electric and hybrid vehicles.
Fame India Scheme : Objectives, Benefits, Eligibility, Achievements
The National Electric Mobility Mission Plan (NEMMP) 2020 was introduced in 2013 with the goal of achieving national fuel security by encouraging the use of hybrid and electric cars. The Ministry of Heavy Industries introduced the FAME India Scheme in 2015 to encourage the use of electric and hybrid vehicles (xEVs) in India as part of the NEMMP 2020. The FAME India Scheme comprises two stages. which are:-
Phase I: The Fame India Scheme's initial phase began in 2015 and ran until March 31st, 2019, with a budget of Rs 895 Crore.
Phase II: This program's second phase began in April 2019 and will go on until the end of March 2024.
The first phase of FAME India focused on four areas: technological advancement, demand generation, pilot project, and components of the charging infrastructure. The phase had a budgetary outlay of Rs. 895 Cr. and was accessible till March 31, 2019.
Different Phases under FAME India Scheme
a) Phase I
- A total of 360 crore rupees worth of demand incentives are used to support about 2.8 lakh xEVs.
- With a government incentive of roughly Rs. 280 crores, 425 electric and hybrid buses were deployed throughout the country's cities.
- An approximate budget of Rs. 43 crores was approved for 520 charging stations and infrastructure.
The following table summarizes the financial information allocated to and used under Phase I of the FAME India Scheme:-
|S. No.||Financial Year||Fund Allocated (in Rs Crores)||Fund Utilization (in Rs Crores)|
b) Phase II
Phase II of the FAME Scheme was approved with an outlay of Rs. 10,000 crores for a period of five years beginning on April 1, 2019, based on the knowledge gathered during Phase I of the FAME Scheme and suggestions from various stakeholders, including industry organisations.
FAME II Redesigned
In June 2021, the FAME India II Scheme underwent a makeover in response to industry and customer feedback as well as experience, particularly during the Covid19 epidemic. The revised plan seeks to hasten the adoption of electric vehicles by reducing their initial costs.
The following amendments have been made to the scheme:-
- For Electric 2 Wheelers, the demand incentive has been enhanced from 10,000/KWh to Rs. 15,000/KWh with a maximum cap increased from 20% to 40% of the cost of cars. FAME II has been extended for an additional 2 years, ending on March 31, 2024.
- The aggregation will be the primary strategy for Electric 3 Wheelers to bring the upfront cost to a reasonable level and on par with ICE-3 Wheelers. For 3 lakh Electric 3 Wheelers, Energy Efficiency Services Limited (EESL) would combine demand from various user segments.
- Nine cities (Mumbai, Delhi, Bangalore, Hyderabad, Ahmedabad, Chennai, Kolkata, Surat, and Pune) with a combined population of over 4 million will be targeted for the usage of electric buses. For the remaining electric buses covered by the plan, EESL will combine demand across these nine cities on an OPEX basis.
The sale of electric two-wheelers climbed from 700 per week before the remodel of FAME II in June 2021 to over 5000 per week after the rebuild.
The following is a list of Fame India's main goals:-
- This programme promotes producers of electric vehicles and related goods and services to produce more of them in the nation.
- Its objective is to lower air pollution and vehicle emissions across the nation.
- Another goal of this plan is to build a charging infrastructure for electric vehicles.
- The Fame India Scheme aims to replace 30% of all vehicles on the road with electric models by 2030.
The Fame India scheme provides the following benefits:-
- Concerns about the environment and fuel saving will be greatly reduced.
- Different segments of vehicles will receive subsidies in accordance.
- Individuals can use environmentally friendly public transportation.
- The development of charging stations nearby further encourages people to choose electric vehicles.
- This programme will enable people to benefit from renewable energy sources through charging systems.
- Applicants must first be eligible for the Fame India Scheme in order to take advantage of its benefits. The eligibility requirements for this programme are outlined in the section that follows.
The following people are eligible to receive benefits under the Fame India scheme:-
- Electric vehicle manufactures
- Electric vehicle infrastructure providers
How to Avail Benefits Under Fame India Scheme ?
Applicants must take the actions listed below in order to benefit from Phase II of the Fame India Scheme, which is the most recent phase.
Step 1: Go to the Department of Heavy Industries, Ministry of Heavy Industries, and Public Enterprises' official websites.
Step 2: Select Fame India Phase II from the menu.
Step 3: Subsequently, a screen with an application form will display.
Step 4: Complete the form with the necessary information and then follow the on-screen directions to finish the process.
Achievements under FAME India Phase II
In this phase, electrification of public transportation, including shared transportation, is given top priority.
- A total of around Rs. 1869 crores worth of demand incentives have been used to support 4,69,315 electric vehicles (as on July 11, 2022).
- 65 cities, STUs, CTUs, and State Government entities received 6315 e-buses under the Scheme for intracity and intercity operations in 26 states and UT.
- 2877 authorised charging stations in 68 cities and 25 states and UTs
- Fifty Original Equipment Manufacturers (OEMs), including both new and seasoned producers, have revalidated and registered 106 electric vehicle models.
- The number of electric two-wheeler sales has grown. Putting more of a focus on offering the general public options for economical, environmentally friendly public transit. In the e-3W, e-4W, and e-bus categories, FAME India Phase II will mostly apply to vehicles utilised for public transportation or those registered for commercial use. However, as a mass component, privately owned registered e-2Ws are likewise protected by the programme.
India's EV business is now in a very early stage. However, if the present predicted growth rate is any indication, India will soon rank among the world's top EV markets. This reality is further supported by the government's persistent and devoted efforts over the past few years to promote e-mobility across market segments. These efforts have included a variety of demand and supply incentives as well as targeted EV legislation at the federal and state levels.
The Indian customer base is still reluctant to make the switch to electrified vehicles despite all the factors favoring it. This is mainly because of early adoption barriers like a lack of adequate charging infrastructure, higher capital costs, range anxiety, lengthy charging times, inconsistent electric supply, electricity tariffs, and so on.
The FAME II policy's recent revisions, however, are anticipated to increase demand for 2W and 3W EVs across all consumer categories in India. Initiatives like this would encourage the Indian EV industry to grow and adapt more quickly. There are exciting days ahead for India's electric vehicles. The Fame India Scheme also encourages electricity mobility in a derivative manner.
Following is the need of the hour:-
- India needs the auto industry's active involvement to make the transition to electric mobility easier.
- In order to increase consumer awareness, support domestic production, promote new business models, perform R&D for EVs and componentry, and investigate new business models to promote EVs, the auto and battery sectors might work together.
- Government should prioritise a phased production strategy to support EVs and offer financial and non-financial incentives for EV and battery manufacture.
- To encourage the use of EVs, various government agencies can take into account a variety of potential measures, including congestion pricing, ZEV credits, low emission/exclusion zones, parking regulations, etc.
Thus, the FAME India scheme is one of the successful schemes and this scheme has a long way to go since the future lies in the electronic vehicle and cutting out reliance upon conventional fuel. The FAME India scheme is one step forward in bringing the electronic vehicle revolution to India.