India accelerates sustainable mobility with FAME-II incentives

By Staff Report January 3, 2025 1:49 pm IST

The Indian government launched the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME-India) Scheme to promote electric mobility. The scheme, which began in 2015, has incentivised 16.15 lakh EVs and sanctioned 10,985 EV Public Charging Stations.

To give greater emphasis on providing affordable and environmentally friendly public transportation options for the masses, the Government of India is taking several initiatives. In this direction, the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME-India) Scheme was launched to promote electric mobility through demand incentives for electric vehicles. The first phase of the scheme was initially approved for a period of 2 years, commencing from 1st April, 2015. After successful implementation of the scheme, the second phase, i.e., FAME-II, was launched in 2019 with an outlay of ₹. 11,500 Crore to provide incentives for electric vehicles, including two-, three-, and four-wheelers, electric buses, and also EV public charging stations (PCS).

As of October 31, 2024, ₹. 8,844 crore has been spent, including ₹. 6,577 crore for subsidies, ₹. 2,244 crore for capital assets, and ₹. 23 crore for other expenses. A total of 16.15 lakh EVs have been incentivised, which include 14.27 lakh e-2Ws, 1.59 lakh e-3Ws, 22,548 e-4Ws, and 5,131 e-buses. Additionally, 10,985 EV PCS have been sanctioned, with 8,812 allocated for installation. The scheme includes a phased manufacturing program and has supported significant policy initiatives, such as reducing GST on EVs and enabling state EV policies, contributing to India’s transition to sustainable mobility.