The FAME India Scheme is a government subsidy scheme under the National Electric Mobility Mission Plan (NEMMP). FAME stands for Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India. It is a government-backed scheme. It aims to promote the adoption of electric vehicles in India. The scheme was launched in 2015 and has two phases: FAME India Phase I and FAME India Phase II.

The growth of e-vehicles in the economy is among the most important concerns of governments around the world. Hence, the schemes and initiatives related to this are important for the UPSC and other state psc exams. The FAME India Scheme is very important for the UPSC Civil services exam under the syllabus of the General Studies (GS- 3) paper. Time and again, direct factual and analytical approach-based questions have been asked about these topics. This article will help you to prepare for the Prelims and the Mains stage of the UPSC IAS exam.

This article on Testbook will discuss in a detailed way about the launching date, objective, nodal ministry, and significance of the FAME India scheme. We will also learn about the latest news, budget outlay eligibility, important facts, and benefits related to the scheme. To learn about more such topics in an interactive manner under the guidance of an expert mentor and to take your preparation to a more robust level, check out the UPSC Online Coaching.

Source: India.gov.in

Fig.1 – Logo of FAME India Scheme

Latest News related to FAME India Scheme

More than 4 Lakh Electric Vehicles Sold and Registered under FAME India scheme phase 2 (FAME 2)

• According to an answer from the Minister of State for Heavy Industries in Lok Sabha, 4.75 Lakh electric vehicles (EVs) have been sold and registered by 58 original equipment manufacturers (OEMs) till July 2022 in the country.
• The government aims to provide subsidies on 15.62 Lakh vehicles.

Enhance your civil services preparation by reading SERB POWER Scheme exams on Testbook.

What is the FAME India Scheme?

FAME India, which stands for Faster Adoption and Manufacturing of Electric Vehicles in India, was introduced in the Union Budget 2015-16 to promote electric transportation. It's a part of the National Electric Mobility Mission Plan (NEMMP) - 2020. Phase 1 of FAME India was launched on April 1, 2015, and operated until March 31, 2019, with a budget of Rs. 895 Crore. FAME 2, the second phase, started in April 2019 and will continue until March 31, 2024, with a budget of Rs. 10,000 Crore. The scheme aims to incentivize the purchase of electric vehicles by offering financial subsidies to buyers. Subsidies are available for Electric 2 Wheelers, Electric 3 Wheelers, Electric 4 Wheelers, Electric Buses, and charging stations. The scheme focuses on four main areas: technological development, generating demand, piloting projects, and building charging infrastructure.

Background of Fame India Scheme

The FAME India Scheme, which stands for Faster Adoption and Manufacturing of Electric Vehicles in India, was introduced in the Union Budget 2015-16. It was established to promote the adoption of electric vehicles and contribute to a cleaner and more sustainable transportation system in India. FAME India is a critical component of the National Electric Mobility Mission Plan (NEMMP) - 2020, aimed at reducing vehicular emissions and dependence on fossil fuels. The scheme is administered by the Department of Heavy Industry.FAME 2 seeks to further encourage the adoption of electric vehicles by providing financial incentives to both buyers and manufacturers. It also focuses on developing charging infrastructure and promoting research and development in the electric mobility sector.

Learn about MUDRA Yojna here.

Objectives of FAME India Scheme

The objectives of the FAME India Scheme are –

• To accelerate the adoption of electric vehicles by lessening the initial investment.
• To encourage electric vehicle manufacturers, suppliers, and related providers to produce a greater number of electric automobiles in the country.
• To reduce the country’s vehicular emissions and bring down the levels of air pollution.
• To develop electric charging infrastructure across the country.
• To convert 30% of overall transportation to electric vehicles by 2030.

Also, read the article on PM Kisan Sampada Yojana here!

Features of FAME India Scheme

The FAME India scheme is implemented in two phases. So, a UPSC IAS exam aspirant needs to know the features of the important scheme.

Features of Phase I

• Phase I of the scheme was launched to achieve national fuel security with the help of the promotion of hybrid and electric vehicles (EVs) in the country.
• It was functional from 2015 to 2019.
• The budget outlay for Phase I was Rs 895 Crore.
• Phase I of the scheme supported 2.8 lakh with demand incentives.
• There were 425 electric and hybrid buses deployed across the country.
• There were about 520 Charging Stations and Infrastructure sanctioned in four years.

Features of FAME 2

• FAME India scheme Phase II was launched after the successful outcomes of Phase I for the faster proliferation of EVs by cutting down the upfront investment costs.
• It will be functional from April 2019 to March 2024 for five years. Initially, it was launched for 3 years but later extended to two more years.
• The budget outlay for Phase II is increased to Rs 10,000 Crore.
• Under Phase II of the scheme, the following incentives will be granted –
  • Demand incentive of Rs 15,000/KWh with a maximum cap of 40% of the cost of two-wheeler vehicles.
  • Demand incentive of Rs 20,000/KWh for electric buses.
  • Demand incentive of Rs 10,000/KWh for the remaining category of vehicles.
• In addition, Phase II will promote the integration of renewable energy sources with charging infrastructure by interlinking.
• Charging stations will be established in metro cities, smart cities, hilly and mountainous states, and million-plus population cities across the whole country.

Also, check this article on UJALA Scheme for your UPSC exam.

How does the FAME India Scheme work?

The FAME India scheme will work through the following vertical given below –

• Demand Incentive
• Administration of the Scheme, which includes Information, education, and awareness activities.
• Setting up charging stations

Eligibility Criteria for Demand Incentives

• Demand incentive is the direct subsidy that is provided to the buyer for the generation demand for EVs.
• The eligible category of vehicles is – Electric buses, e-Four Wheeler, and e-Three Wheelers, including e-rickshaws, e-carts, and e-Two Wheeler.
• All eligible vehicles under the FAME India Scheme should be registered under the Central Motor Vehicles Rules, 1989.
• The subsidy to an individual will be provided on only one vehicle of a particular category.

Working

• Suppose the XYZ two-wheeler Electric vehicle is available at an ex-showroom price of Rs 1,30,200 in Mumbai.
• After the subsidy under FAME India Scheme, it will be available at ₹ 1,15,200.
• The original equipment manufacturer(OEM) will claim this subsidy from the Department of Heavy Industry.
• The OEM has to fulfill minimum technical eligibility criteria related to the performance and efficiency of vehicles.

Study about Integrated Child Protection Scheme for UPSC preparation!

Benefits of FAME India Scheme

The benefits of the FAME India Scheme are as follows –

• Environmental pollution will be significantly reduced because of the reduction of vehicular emissions.
• By implementing such schemes, India will achieve the target of net zero emission of carbon before 2070.
• The electric charging infrastructure will be set up across the country.
• The citizens will avail of the incentives on the purchase of electric vehicles for personal use.
• The dependence on oil imports will reduce the current account deficit and, hence the capital expenditure.
• It will provide eco-friendly public transportation for citizens.

Check out this article on the National Clean Air Programme.

Need for FAME India Scheme

It becomes important for a UPSC civil services aspirant to have an idea behind the launch of any government scheme. So, let us learn about the reasons behind the need for the FAME India Scheme 

• Environmental Pollution – According to reports, air Pollution is single-handedly responsible for more than 15 lakh deaths in India in 2019, i.e., 17.8% of all deaths. Vehicular emissions are among one the primary sources of air pollution. Hence, it is the need of the hour to bring down vehicular emissions.
• Reduce Oil Import – The penetration of electric vehicles in society will help India to reduce its oil dependency while solving the challenge of energy scarcity and also reducing the Current Account Deficit (CAD).
• Fulfil Global Commitments – Globally, India is the fourth highest emitter of carbon dioxide. At the COP26 in Glasgow, it pledged to reduce its carbon emissions to net zero by the year 2070. India has also committed to cutting its GHG emissions intensity by 33% to 35% below 2005 levels by 2030
• Self-Reliance in Manufacturing Component – Presently, India does not manufacture most of the lithium-ion (Li-ion) battery cells. To reduce India’s dependence on other countries for its import of battery cells, it is required to implement a policy.
• Low Maintenance Cost – Electric vehicles are assembled with less number of moving parts. If the moving parts are fewer, then there will be less maintenance required. Hence, it will bring down the maintenance cost of the vehicle.

Read about the National Education Policy for your UPSC examination.

Accomplishments of FAME India Scheme

It is always advised to mention accomplishments and current status of the particular scheme in the UPSC Mains answers to score good marks. Let us learn about the accomplishments of the FAME India scheme –

Check out the test series for UPSC IAS Exam here.

Concerns Related to FAME India Scheme

Here are some of the concerns related to the FAME India scheme:

• Electric vehicles are still relatively expensive compared to conventional vehicles. This is a major barrier to adoption, especially for lower-income consumers.
• There currently needs to be a charging infrastructure in India. This makes it difficult for people to own and use electric vehicles.
• Range anxiety is the fear of running out of battery power while driving an electric vehicle. This is a major concern for many potential buyers.
• The FAME India scheme is government-backed. Yet, it needs to be made clear how long the government will continue to support the scheme. This uncertainty could discourage investment in the electric vehicle sector.
• There are still some technological challenges that need to be addressed before electric vehicles can become mainstream. For example, battery technology needs to improve to increase the range of electric vehicles.

FAME India Scheme: Facts and figures for UPSC

Facts and figures related to Government schemes are very important for the UPSC Civil services exam. Some of the noteworthy facts related to the FAME India Scheme are given below in the following table –

For UPSC examination and other competitive examinations, learn about multiple government schemes on Testbook.

Way Forward

• India has almost 80% of vehicles as two-wheelers whereas the share of four-wheelers accounts for only 2%. But, the subsidy under the FAME scheme is given based on the battery capacity.
• The present subsidy regime tends to provide higher incentives for premium four-wheelers in comparison to two-wheelers. The government should revisit this clause of the scheme so that maximum benefit can be provided to the larger segment.
• Government should address the issue of charging infrastructure because charging stations are the top limiting factor behind the lower penetration of electric vehicles.
• The government should consider innovative incentive rules to promote electric vehicles, such as eliminating road tax and registration fees, free tolls on highways, free parking, and dedicated parking spots in offices and residential complexes for electric vehicles.

UPSC Previous Year Questions (PYQs) related to FAME India Scheme

Q What is an FRP composite material? How are they manufactured? Discuss their applications in the aviation and automobile industry. [UPSC Civil Services Mains 2013]

Download the PDF on Fame India Scheme notes for UPSC Exam here.

We hope all your doubts related to the topic of the “FAME India Scheme” are addressed after going through this article. Testbook provides comprehensive notes for Civil services and various other competitive examinations. It has always assured the quality of its product like content pages, live tests, GK and current affairs, mocks, and so on. Ace your UPSC preparation with Testbook. Download the Testbook App now!