Fame India Scheme Phase II

Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME II), is a scheme launched by the Government of India to give a boost to development of Electric Vehicles. This is important considering the efforts to combat climate change across the globe. The Government of India has allocated a budget of Rs 10,000 crores for the second phase of this scheme. This scheme was launched to achieve the goals of National Electric Mobility Mission Plan (NEMMP). Phase I lasted from 2015 to 2019 and Phase II of FAME was launched in 2019 and is expected to be completed by 2022.

Latest Context on FAME India Scheme – 

  1. The Central government has increased the subsidy under the second phase of the FAME India scheme on electric two-wheelers by 50 percent. The subsidy will now be Rs 15,000 per kWh for electric two-wheelers under FAME India phase II. Earlier, it was Rs 10,000 per kWh. Additionally, the cap on subsidy for an electric two-wheeler will be 40 per cent of its cost, up from 20 per cent earlier.
    • The government’s continued support to Electronic Vehicles- EVs will make the electric Two-wheelers more affordable which will greatly benefit electric motorcycle and scooter customers.
    • Sustainable mobility solutions are very important for the future and the improved incentives for electric two-wheelers will increase penetration and encourage further indigenous investments in future technology.

Aspirants would find this topic helpful for the IAS Exam.

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FAME India Scheme Phase II 

Some of the key features of the FAME II scheme are given below.

  1. Allocation of Rs 10,000 crores for a period of 3 years from 2019 to 2022.
  2. Rs 1,000 crores has been set aside for setting up charging stations for electric vehicles. It has given a proposal of providing 1 slow charging unit for every electric bus and 1 fast charging station for 10 electric buses.
  3. The Central Government will incentivize the purchase of approximately 5 lakh three wheelers, 7000 electric buses and 35,000 four wheelers.
  4. Official site for FAME India Scheme: https://fame2.heavyindustry.gov.in/
  5. Department of Heavy Industries, the Ministry of Heavy Industries and Public Enterprises is the monitoring authority

What Steps are taken by the Central Government to Make Electric Vehicles more Affordable?

The following steps are taken by the Central Government to make Electric vehicles more affordable.

  1. Incentives will be given to manufacturers involved in development of electric vehicles.
  2. Incentives will be given to manufacturers involved in development of lithium ion batteries and electric motors.
  3. The Centre has directed states to frame policies and provide incentives to manufacturers and buyers.

Candidates can check out the links provided below to assist thair upcoming exam preparation of Civil Services –

National Electric Mobility Mission Plan 2020 National Action Plan on Climate Change (NAPCC)
Electronics Development Fund (EDF)  Lithium Ion Batteries
Sustainable Development Goals – SDGs Green India Mission (GIM)

What were the Objectives of the FAME I Scheme?

  1. Creation of demand
  2. Provide a platform for technology
  3. Concentrate on pilot projects
  4. Work on Charging Infrastructure.

FAQ about Fame India Scheme Phase II


What are the advantages of hybrid and electric vehicles?

Switching to hybrid mode or to electric vehicles will have benefits as it is environment friendly, lesser dependence on fossil fuels, no emissions, usage of cleaner and greener energy.

What is FAME II subsidy?

The revised FAME II scheme offers 50% more subsidy at ₹15,000 per kWh on electric bikes and scooters in India. The government has originally introduced the FAME II scheme in 2019. The new FAME II subsidy aims to encourage faster adoption and manufacturing of electric vehicles in India.

The above details would help candidates prepare for UPSC 2022.

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