FAME – I
Under the national mission, DHI formulated the Faster Adoption and Manufacturing of Hybrid and Electric vehicles (FAME) scheme with an approved financial outlay of INR 7.95 billion for a period of two years. The focussed areas of development in this scheme were R&D of pilot projects, charging infrastructure, and demand creation. The demand incentive provided under the scheme could directly be availed by the buyers upfront at the point of purchase.
The two years scheme was later extended for another two years up to 31st March 2019. FAME–I had a planned budget allocation of 7.95 billion as demand incentives, but only 5.29 billion was allocated in over four years. The subsidies were applicable for two-wheelers, three-wheelers, passenger cars, light commercial vehicles, and buses.
FAME – II
In March 2019, DHI notified phase II of the FAME scheme with a total budget outlay of INR 100 billion until March 2022, which has been extended till March 2023. FAME – II proposes INR 86 billion as demand incentives to be provided upfront during the purchase of EVs.
To encourage public transport, the buses would receive a subsidy of 40% of the cost of vehicles, and a 20% subsidy would be given to other commercial vehicles. The scheme would cover incentives for 1.56 million vehicles until 2022. To provide a further push to clean public mobility, the DHI approved a sanction of 5595 electric buses to 64 cities, state government entities, State Transport Undertakings (STUs) for intra-city and intercity operation under the scheme.
Fund allocation under the FAME-II scheme is focussed more on demand incentives and setting up charging infrastructure.The broader objective is to set up 2,700 charging stations in metros, cities with a million plus population and highways. In addition, there is a provision for one slow charger to be provided to a buyer for every e-bus purchased and one fast charger for every 10 e-buses purchased.
Under FAME II, stringent eligibility conditions are imposed to promote local manufacturing.
- Localisation of up to 40% for buses, 50% for other vehicle categories of ex-factory price
- Subsidy linked to battery size with no reference to range/ performance: INR 20,000 per kWh for buses; INR 10,000 per kWh for other vehicles
- Maximum subsidy cap across categories
Under the FAME II Scheme 76,071 EVs have been sold as of May 2021, out of which E2W accounted for the sales of 58,673 units. Karnataka accounted for the largest share of EVs sold (17,105), followed by Tamil Nadu (11,718), Maharashtra (8,555), Delhi (5,492), and Rajasthan (5,499).