Fame India Scheme

The FAME India Scheme is a pivotal policy launched by the Department of Heavy Industry to foster sustainable growth by promoting electric and hybrid vehicle technology across India. With a substantial outlay of INR 10,000 Crores, this initiative seeks to enhance public transport and encourage the widespread adoption of cleaner vehicle technologies. In this article, we explore key aspects of the Fame India Scheme and offer insights into its critical components.

Overview

Introduced in 2015 with an initial budget of INR 795 Crores, the Fame India Scheme was essentially crafted to address the burgeoning demand for environmentally friendly transportation. The scheme's first phase spanned from April 2015, with extensions leading to the announcement of Phase II in March 2019. Phase II aims to propel electric mobility adoption further by building a robust manufacturing ecosystem in India over three years starting from April 2019. For a deeper understanding, visit the dedicated Fame India Scheme page.

General Parameters of the Scheme

Phase II of the Fame India Scheme is meticulously designed for a three-year period since April 2019, emphasizing rapid adoption and manufacturing ecosystem development. A key component of this phase is the establishment of the Project Implementation and Sanctioning Committee (PISC), an empowered body ensuring the scheme's smooth execution through policy adjustments and resolution strategies. The committee also looks into aspects like sanction assistance and expenditure modifications when necessary.

Project Implementation and Sanctioning Committee (PISC)

The PISC, chaired by the Secretary of the Department of Heavy Industry, supervises and implements the scheme. Its responsibilities include:

Sanctioning assistance for projects under the Scheme.
Modifying parameters for various components, ensuring flexibility to adapt to market demands.
Resolving issues to maintain seamless execution.

Major Verticals of the Scheme

The implementation is categorized into three significant verticals:

Demand Incentives
Establishment of a Network of Charging Stations. Learn more about electric vehicle charging guidelines.
Administrative tasks, including Information, Education, and Communication (IEC) activities.

Fund Allocation

Below is the fund allocation table for the corresponding years:

Serial Number	Component	2019-20	2020-21	2021-22	Total Fund Requirement
1	Demand Incentives	822	4587	3187	8596
2	Charging Infrastructure	300	400	300	1000
3	Administrative Expenditure including Publicity and IEC Activities	12	13	13	38
Total for Phase II of Fame India Scheme	1134	5000	3500	9634
4	Committed Expenditure of Phase I	366	0	0	366
Total	1500	5000	3500	10000

Scheme Parameter: Demand Incentives

Demand incentives are an instrumental facet of the Fame India Scheme, effectively reducing electric vehicle costs to stimulate demand. This upfront purchase price reduction is reimbursed to Original Equipment Manufacturers (OEMs) by the Government, fostering widespread adoption. Vehicles eligible for these incentives span across:

Electric Buses
Four Wheelers, including various hybrid models
Three-wheelers, including registered e-Rickshaws
Electric Two-Wheelers

Significantly, incentives are aligned with battery capacity and revised based on trends, promoting affordable public transport. Visit the Fame India Scheme page for comprehensive details.

Quantum of Demand Incentives

Salient features of demand incentives in Phase II include:

A uniform incentive of INR 10,000 per KWh proposed for all vehicle types, with buses having a potential maximum of INR 20,000 per KWh.
Annual reviews are conducted to adjust incentives based on evolving market parameters.
Demand Incentives are facilitated for electric buses on an operational expenditure model. Further details on these guidelines can be viewed on electric vehicle charging guidelines.

Conditions to Avail Demand Incentives

To avail demand incentives, certain conditions must be met:

Incentives are capped based on the vehicle cost to prevent high-end models from benefitting disproportionately.
OEMs must be registered with the Department of Heavy Industry.
Vehicle models need to meet specific technical eligibility criteria set by recognized agencies.
Vehicles must be manufactured locally, comply with the Central Motor Vehicle Rules, and have a FAME India Phase II certificate.
An obligatory three-year warranty, including sufficient monitoring devices, is required.

Disbursement of Demand Incentives

Besides buses, demand incentives are disbursed through an e-enabled framework managed by DHI. OEMs are tasked to submit reimbursement claims monthly. The method named Demand Incentive Delivery Mechanism (DIDM) ensures systematic fund flow. Detailed deployment guidelines for buses are also systematically outlined.

Scheme Operationalisation

For effective scheme management, additional measures include:

Collaboration with knowledge partners and technical experts for logistical support.
Comprehensive IEC programs for awareness and education.
Continuation of Phase I projects honoring original terms.

The Department of Heavy Industry meticulously oversees the Fame India Scheme's implementation, ensuring obstacles are promptly addressed.

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Frequently Asked Questions

Common questions about FAME India Scheme.

The FAME India Scheme, or Faster Adoption and Manufacture of Electric (and Hybrid) Vehicles in India, is a government initiative aimed at promoting the manufacture and adoption of electric and hybrid vehicle technology in India. It was launched by the Department of Heavy Industry with an initial outlay of INR 795 crores in 2015 and has been extended over time, with the latest extension being Phase II approved in 2019.

The primary objectives of the FAME India Scheme are to accelerate the adoption of electric mobility in India and develop a robust manufacturing ecosystem for electric vehicles in the country. Phase II of the scheme, in particular, focuses on achieving these goals through demand incentives, establishing a network of charging stations, and promoting awareness and education about electric vehicles.

The Government of India has declared an outlay of INR 10,000 crores for the FAME India Scheme. This funding is divided between various components, such as demand incentives, charging infrastructure, and administrative expenses, over the duration of the scheme's phases.

The FAME India Scheme offers demand incentives for electric buses, four-wheelers (electric, plug-in hybrid, and strong hybrid), three-wheelers (electric, including registered e-rickshaws), and electric two-wheelers. These incentives are aimed at reducing the cost of acquisition for consumers and promoting the adoption of electric vehicles.

The demand incentives for vehicles, excluding buses, are calculated based on a uniform rate of INR 10,000 per kWh of battery capacity. For buses, the initial uniform maximum demand incentive is set at INR 20,000 per kWh, subject to competitive bidding among OEMs. These incentives may be reviewed and revised annually by the Project Implementation and Sanctioning Committee (PISC) based on market trends and other factors.

To avail demand incentives, vehicles must be manufactured in India with a certain percentage of localization, meet the provisions of the Central Motor Vehicle Rules, have a minimum 3-year comprehensive warranty (including the battery), and be fitted with monitoring devices. Additionally, there are caps on incentives based on the ex-factory price and cost of the vehicle.

For vehicles excluding buses, the demand incentives are disbursed through an e-enabled framework called the Demand Incentive Delivery Mechanism (DIDM), where OEMs submit monthly claims for reimbursement. For buses, detailed guidelines and mechanisms for deployment and disbursement through State Transport Undertakings will be notified separately.

The PISC, an inter-ministerial empowered committee headed by the Secretary of the Department of Heavy Industry, is responsible for monitoring, sanctioning, and implementing the FAME India Scheme. It has the authority to modify scheme parameters, allocate funds, resolve implementation issues, and formulate guidelines for the smooth execution of the scheme.

The scheme includes provisions for an Information, Education, and Communication (IEC) program to create consumer awareness and promote electric vehicles. This program will be executed through educational initiatives, training, publicity campaigns, business meets, seminars, conferences, and other events organized by the Department of Heavy Industry, industry associations, and voluntary organizations.

The Department of Heavy Industry is responsible for the overall implementation of the FAME India Scheme and addressing any obstacles that may arise during its execution. It will also facilitate knowledge partners, technical expertise, and logistical support for the smooth operation and implementation of the scheme.