Faster Adoption and Manufacturing of Electric vehicles (FAME) India scheme

FAME India scheme or Faster Adoption and Manufacturing of Hybrid and Electric Vehicles in India scheme was launched by Government of India in 2015 to achieve the objectives of National Electric Mobility Mission Plan (NEMMP) 2020. 

FAME scheme aims to promote manufacturing of electric and hybrid vehicles.


What is National Electric Mobility Mission Plan (NEMMP) 2020?

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, Department of Heavy Industry formulated a Scheme viz. Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME India) Scheme in the year 2015 to promote manufacturing of electric and hybrid vehicle technology and to ensure sustainable growth of the same.


Phase-1 of FAME (1st April, 2015 - 31st March, 2019)

Phase-1 of FAME was launched on 1st April, 2015 and was completed by 31st March, 2019. 

Phase-1 of FAME had four focus areas:

a) Demand Creation
b) Technology Platform
c) Pilot Project
d) Charging Infrastructure

Market creation through demand incentives was aimed at incentivizing all vehicle segments i.e.: 
  • 2-Wheelers, 
  • 3-Wheelers Auto, 
  • Passenger 4-Wheeler vehicles, 
  • Light Commercial Vehicles and 
  • Buses.

Demand incentive

The demand incentive was available to buyers of xEV in the form of: 

1) An upfront reduced purchase price to enable wider adoption. 

2) Also, grants were sanctioned for specific projects under Pilot Projects, R&D/Technology Development and Public Charging Infrastructure components under the scheme. 

In the 1st phase of scheme, about 2.78 lakh xEVs were supported with a total demand incentives of Rs. 343 Crore [Approx]. In addition, 465 buses were sanctioned to various cities/states under this scheme.

Under FAME Scheme Phase-I, the demand incentive amount was determined for each category (vehicle - technology - battery type) taking into account the principles of: 
  • Total Cost of Ownership (TCO), 
  • Pay-back Period on account of fuel savings, 
  • cost of maintenance etc.


Evaluation of Phase-1 of FAME and its findings

The evaluation of Phase-I of FAME Scheme was done by an independent consultant. The main findings of the validation of outcome report as submitted by consultant are given below:

 
1) Awareness

During the last 2 years, the agenda of clean mobility has been placed front and center in all discussions. The relatively increased awareness, is in itself a notable achievement

 
2) Targets of FAME

Overall outcomes of key parameters of Fuel saving and CO2 reduction are significantly below the target for FAME;


3) Industry Players

Industry players have been cautious about developing capabilities – players have chosen to operate adjacent to their core capabilities


4) Subsidy structure 

Subsidy structure needs to be revised based on the powertrain technology (to incentivize cleaner technologies) and to establish parity across technologies


5) Plan Implementation

Overall phased implementation plan has taken off but at the very slow pace, demonstrated limited progress in the first phase. The next phase of scheme extension should focus on a clear catch-up plan.


6) Evaluate benefits from unaccounted segments

Benefits from unaccounted segments like e-3W and e-rickshaws can potentially add to the results, however growth in segments like e-rickshaws was unplanned. Support to these segments to be evaluated.




Phase-2 of FAME 

Phase-2 of FAME was launched on 1st April, 2019 with an outlay of 10,000 Crore for a period of 3 years and it aims at electrification of public transportation.



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