The Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme in India has been making headlines recently. Officials have stated that the next phase of the scheme can only be launched if the funds allocated for it remain unused at the end of the current financial year.
The FAME India scheme was launched by the Ministry of Heavy Industries in 2015, with the National Automotive Board under the Department of Heavy Industry implementing it. The scheme aims to incentivize the production of electric vehicles domestically, reduce vehicle emissions and air pollution levels, establish an electric charging infrastructure, and achieve a 30% conversion of total transportation into electric vehicles by 2030.
The FAME India Scheme is divided into two phases: Phase I and Phase II. Phase I began in 2015 and was operational until March 31, 2019. Phase II started in April 2019 and is set to continue until March 31, 2022. Recently, the government announced that it will extend Phase II until March 31, 2024.
During Phase I, the authorities focused on demand creation, technology platforms, pilot projects, and charging infrastructure. The government established 427 charging stations and allocated ₹895 crores to cover the expenses of Phase I, providing support to nearly 2.8 lakh electric vehicles.
In Phase II, the focus is on the electrification of public and shared transportation. The government has allocated a budget of ₹10,000 crores for this phase, offering incentives for various categories of vehicles. The scheme aims to establish 2700 charging stations across the country and on highways, with a gap of 25 km between two consecutive stations.
The FAME India Scheme provides various benefits, such as reducing issues related to environmental and fuel conservation, providing subsidy benefits to different vehicle segments, promoting eco-friendly public transportation, encouraging the use of renewable energy sources, and establishing charging stations nearby. However, there are challenges and issues related to the scheme, such as uncertainties about the demand for electric and hybrid vehicles, and FAME-II discouraging the use of smaller vehicles by correlating the incentives’ value with the car battery’s size.
In summary, the FAME India Scheme is a government-led initiative to promote the production and adoption of electric vehicles and establish a charging infrastructure across India. While the scheme offers numerous benefits, there are also challenges that need to be addressed to ensure its success.