India’s Ministry of Heavy Industries has successfully implemented the Faster Adoption and Manufacturing of Electric Vehicles in India Phase II (FAME India Phase II) Scheme, with a budgetary allocation of Rs. 10,000 crore over five years starting from April 1, 2019.
The primary goal of this phase is to encourage the electrification of public and shared transportation by providing demand incentives for 7,090 e-Buses, 5 lakh e-3 Wheelers, 55,000 e-4 Wheeler Passenger Cars, and 10 lakh e-2 Wheelers. The strategy also encourages the development of charging infrastructure.
As of December 1, 2023, under FAME India Phase II, a substantial subsidy amounting to Rs. 5,228.00 crore has been provided to electric vehicle manufacturers for the sale of 11,53,079 electric vehicles. The breakdown of sold electric vehicles includes 10,16,887 two-wheelers, 1,21,374 three-wheelers, and 14,818 four-wheelers.
Moreover, the MHI has sanctioned 6,862 electric buses for intracity operations, with 3,487 e-buses already supplied to State Transport Undertakings (STUs) as of November 29, 2023.
To encourage the establishment of electric vehicle charging infrastructure, the MHI has sanctioned Rs. 800 crore as a capital subsidy to three Oil Marketing Companies (OMCs) of the Ministry of Petroleum and Natural Gas (MoPNG) for the setup of 7,432 public charging stations.
Under FAME India Phase II, incentives are not provided to electric vehicle manufacturers; instead, consumers benefit from reduced upfront purchase prices, which are reimbursed to manufacturers by the Government of India.
As of November 29, 2023, a total of 62 Original Equipment Manufacturers (OEMs) have been registered to avail of demand incentives, with claims submitted amounting to Rs. 5,094 crore, of which Rs. 3,815 crore has already been disbursed.
Additionally, FAME India Phase II does not include provisions for the manufacturing capacity of advanced chemistry cells. However, to boost India’s manufacturing capabilities, the Government approved the Production Linked Incentive (PLI) Scheme for ‘Advanced Chemistry Cell (ACC) Battery Storage,’ with a budgetary outlay of Rs. 18,100 crore.
Compliance with rules, phased manufacturing plans, and requirements for obtaining demand incentives are all part of the implementation and monitoring of FAME India Phase II. The scheme is managed by the Inter-Ministerial Empowered Committee “Project Implementation and Sanctioning Committee (PISC),” which is chaired by the Secretary (Heavy Industry). Shri Krishan Pal Gurjar, Minister of State for Heavy Industries, revealed this information in a written reply in Lok Sabha.