Cabinet approves Scheme for FAME India Phase II

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  1. The Union cabinet has approved the proposal for implementation of ‘Faster Adoption and Manufacturing of Electric Vehicles in India Phase II (FAME India Phase II)’. The scheme will be implemented over the period of three years with effect from 1st April 2019.
  2. 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.
  3. 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.
  4. In 3W and 4W segment incentives will be applicable mainly to vehicles used for public transport or registered for commercial purposes. While, in case of the e-2Ws segment, the emphasis will be on the private vehicles.
  5. The benefits of incentives, will be extended to only those vehicles which are fitted with advance battery like a Lithium Ion battery and other new technology batteries.
  6. Under the scheme, charging stations would be established in metros, other million plus cities, smart cities and cities of Hilly states and major highways connecting major city clusters.
  7. 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.
  8. 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.