To promote electric vehicles, the government launched the Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme.
Following its success, FAME-2 was introduced, with its deadline ending on March 31.
As the country was heading into elections, the Electric Mobility Promotional Scheme (EMPS) was temporarily launched for four months, ending in July.
Discussions are now underway for the launch of the third phase, ‘FAME-3’.
Overview of the FAME Scheme
What is FAME?
As part of the National Electric Mobility Mission Plan (NEMMP), the Department of Heavy Industry launched the FAME India scheme in 2015 to promote electric and hybrid vehicle technology and manufacturing.
Implemented from April 1, 2015, the scheme provides subsidies to electric vehicle manufacturers, benefiting consumers directly during vehicle purchases.
Expectations from FAME-3
An official report suggests that FAME-3 might be rolled out within the first 100 days of the new government.
This phase may have an outlay of Rs 10,000 crore, providing financial assistance to electric two-wheelers, three-wheelers, and government buses.
However, electric cars might not be included initially.
The scheme will require vehicle manufacturers to reapply and may be launched for two years, unlike FAME-2, which lasted for five years.
Current Subsidies and Previous Phases
How Much Subsidy is Available?
Under the current EMPS scheme, the government provides a subsidy of Rs 10,000 to Rs 11,000 on electric two-wheelers, down from Rs 22,500 under FAME-2. For electric three-wheelers, the subsidy is Rs 50,000, compared to Rs 111,505 previously.
This translates to a subsidy of Rs 5,000 per kilowatt hour (kWh) of battery capacity.
FAME Step 1
The first phase of FAME started on April 1, 2015, with an initial period of two years, extended multiple times until March 31, 2019. This phase focused on demand creation, technology platforms, pilot projects, and charging infrastructure.
The target was to promote electric 2-wheelers, 3-wheelers, 4-wheelers, light commercial vehicles, and electric buses, with a total fund allocation of Rs 529 crore until 2019.
FAME 2nd Stage
Launched on April 1, 2019, with an outlay of Rs 10,000 crore, FAME-2 aimed to support 7,000 electric buses, 500,000 electric 3-wheelers, 55,000 electric 4-wheeler passenger cars (including strong hybrids),
and 1,000,000 electric 2-wheelers. The scheme, initially set for three years, was extended until March 2024.
EMPS Scheme
After FAME-2 ended on March 31, the government introduced the Rs 500 crore Electric Mobility Promotional Scheme (EMPS) for four months, ending in July.
This temporary scheme focused on supporting 372,215 units of electric vehicles, including 333,387 two-wheelers and 38,828 three-wheelers, in response to the upcoming general elections.
