FAME India-II scheme to provide incentives to all EV categories based on technology

FAME India-II scheme to provide incentives to all EV categories based on technology

Indian government has announced several times about promotion of electric vehicles but nothing concrete has been done so far in order to promote sale of electric vehicles in the fast growing Asian automobile market. According to a recent PTI report, the adoption of electric vehicles (EVs) is potentially on the verge of a big boost in India, thanks to the government’s efforts in finalizing of the ‘FAME II’ scheme.

The FAME II scheme marks the second phase of the FAME -- ‘Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles’ -- scheme in the country. The roadmap of FAME II scheme was recently finalized by the Indian government together with an inter-ministerial panel -- comprising top officials from Road Transport and Highways, Finance and Heavy Industry Ministry -- and other departments including government think-tank NITI Aayog.

As per the PTI report, an investment of approximately Rs 5,500 crore has been earmarked for the FAME II scheme over a five-year period, in order to provide subsidy support for EVs of different types --- two-wheelers, three-wheelers and four-wheelers.

Currently, under the FAME I scheme, the government is providing EV incentives to consumers who purchase strong hybrid and electric cars, two-wheelers and three-wheelers.

With FAME II scheme essentially ensuring that subsidy support by the government is extended to a wide range of EVs based on their technology, incentives of between Rs 1,800 and Rs 29,000 will be available on the purchase of battery-operated scooters and motorcycles; while incentives for three-wheelers will range between Rs 3,300 and Rs 61,000.