- An inter-ministerial steering committee led by Niti Aayog chief executive officer has decided that only companies that meet the 50% localisation threshold will be eligible for the incentives that will be available under the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME-II) scheme.
- FAME is part of the government’s two-pronged strategy to place India as a key driver in the global mobility revolution.The strategy is (a)boost domestic manufacturing by insisting on minimum of 50% local content in e-vehicles and (b)create massive size and scale for electric vehicles in the country to make the investments made in the sector viable.
- The FAME II is an expanded version of FAME I,launched in 2015 which aimed to support hybrid/electric vehicles market development and Manufacturing ecosystem.The FAME scheme is part of the National Electric Mobility Mission Plan (NEMMP).It aims to achieve national fuel security by promoting hybrid and electric vehicles in the country.
- The main objectives of the scheme are a) encourage faster adoption of Electric and hybrid vehicle by way of offering upfront Incentive on purchase of Electric vehicles and b) establish necessary charging Infrastructure for electric vehicles.
- The FAME II scheme will put emphasis on electrification of the public transportation that includes shared transport. Demand Incentives on operational expenditure model for electric buses will be delivered through State or city Transport Corporation.
