The Union government decided to extend the Faster Adoption and Manufacturing of (Hybrid) and Electric Vehicles (FAME) scheme by six months until 30 September 2018, or till the time the second phase of the scheme is approved by it. The department of heavy industries has already prepared a draft of the second phase of the scheme, which has been sent to the finance ministry for approval.

  1. As the government intends to promote electric mobility in India, it is expected that the new version of the scheme will give exemptions and subsidies for manufacturing electric vehicle components and to buyers of electric vehicles (EVs) for commercial purposes like public transport.
  2. FAME, launched in fiscal 2015, was meant to run for two years until March 2017. Subsequently the scheme was extended twice till March 2018.
  3. In December, the department of heavy industries in a bid to utilize the funds sanctioned under the FAME scheme and boost electric mobility across the country, launched a pilot project for funding electric vehicles in 11 cities for public transport purposes.
  4. Under the pilot project, a 60% subsidy is provided to buses, 20% for three-wheelers and 10-15% to four-wheelers. Almost 10% of the total subsidy will be spent on establishing charging stations.
  5. Automobile manufacturers were eagerly awaiting an extension of the FAME scheme before the second phase is introduced some time during the current fiscal year.
  1. Government of India has notified FAME India Scheme [Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India] for implementation with effect from 1st April 2015, with the objective to support hybrid/electric vehicles market development and Manufacturing eco-system. 
  2. The scheme has 4 focus areas i.e. Technology development, Demand Creation, Pilot Projects and Charging Infrastructure. The phase-I of the scheme is being implemented for a period of 2 years i.e. FY 2015-16 and FY 2016-17 commencing from 1st April 2015.
  3. The FAME India Scheme is aimed at incentivising all vehicle segments i.e. 2 Wheeler, 3 Wheeler Auto, Passenger 4 Wheeler Vehicle, Light Commercial Vehicles and Buses.
  4. The scheme covers Hybrid & Electric technologies like Mild Hybrid, Strong Hybrid, Plug in Hybrid & Battery Electric Vehicles.

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Dr. Khan began his career of teaching in 1988 as lecturer in a college of University of Delhi. He later taught at Delhi School of Economics, University of Delhi. He has several research papers and books to his credit.

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