FAME-India: To envisage the holistic growth of Electronic Vehicle industry.

In order to promote manufacturing of electric and hybrid vehicle technology and to ensure sustainable growth of the same, Department of Heavy Industry is implementing FAME-India Scheme- Phase-I [Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India] from 1st April 2015. The scheme, which was initially up to 31st April 2017, has been extended up to 31st March 2019 or till Notification of FAME-II, whichever is earlier.

The Phase-II of the FAME-India Scheme proposes to give a push to electric vehicles (EVs) in public transport and seeks to encourage the adoption of EVs by way of market creation and demand aggregation. The growth of Electronic Vehicle industry, including providing for charging infrastructure, research and development of EV technologies and push towards greater indigenization. The scheme has not been finalized yet.

Total outlay of Phase-I of the FAME-India Scheme has been enhanced from Rs. 795 Crore to Rs. 895 Crore.

Under Demand Creation focus area, the purchaser of electric and hybrid vehicles is given an upfront reduction in purchase price by the dealer at the time of purchase of xEVs. Since the inception of the scheme & till 6th December 2018, the Government has given financial support (demand incentive) to about 2,61,507 electric/ hybrid vehicles. 119 models of vehicles of 27 OEMs got registered under FAME-India Scheme for availing demand incentive.

Since the inception of the scheme, several segments have been added to the scheme so as to ensure that more people take advantage of this scheme. In this spirit, support to fully electric buses has been added to the scheme to support the electrification of public transport. The positive results of these efforts are borne out by the fact that DHI has so far sanctioned 455 electric buses for 9 cities in a pilot scheme launched on 31st October 2017, which got interested from 44 cities seeking 3144 e-buses.

There is no proposal from Government of India to invest in manufacturing of E-Buses. 100 % FDI by automatic route is permitted in the automobile sector. Further, the automobile sector is in the deregulated sector and both private sector and public sector are free to carry out investment in the automobile sector, including for manufacturing of Electric Vehicles and E-Buses.


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