3-Aug-2021: 92,393 Electric Vehicles supported under Phase-II of FAME India Scheme by way of Demand Incentive amounting to about Rs. 278 Cr

The National Electric Mobility Mission Plan (NEMMP) 2020 is a National Mission document providing the vision and the roadmap for the faster adoption of electric vehicles and their manufacturing in the country. This plan was designed to enhance national fuel security, to provide affordable and environmentally friendly transportation and to enable the Indian automotive industry to achieve global manufacturing leadership.

As part of the NEMMP 2020, the Ministry of Heavy Industries formulated a Scheme namely Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME India) Scheme in 2015 to promote adoption of electric/ hybrid vehicles (xEVs) in India. The Phase-1 of the scheme was available up to 31st March, 2019 with budget outlay of Rs 895 Cr. In the 1st phase of the scheme, about 2.8 lakh xEVs were supported with total demand incentives of Rs. 359 Crore [Approx.].

In addition, 425 buses were deployed as sanctioned to various cities/states under this scheme. Under Phase-I of FAME India Scheme, 427 charging stations have been installed.

Based on outcome and experience gained during Phase-I of FAME India Scheme and after having consultations with all stakeholders, including Industry and Industry Associations, the Government notified Phase-II of FAME India Scheme for a period of three years commencing fromApri1 01,2019 with a total budgetary support of Rs. 10,000crore. This phase mainly focuses on supporting electrification of public & shared transportation, and aims to support through demand incentive 7090 eBuses, 5 lakh e-3 Wheelers, 55000 e-4 Wheeler Passenger Cars and 10 lakh e-2 Wheelers. In addition, creation of charging infrastructure is also supported under the Scheme.

Under Phase-II of FAME India Scheme, 92,393 Electric Vehicles have been supported till 29.07.2021 by way of Demand Incentive amounting to about Rs. 278 Cr. Further, 6265 electrical buses have been sanctioned to various State/City Transport Undertakings under Phase-II of the Scheme. The Ministry has also sanctioned 2,877 Electric Vehicles (EVs) Charging Stations amounting to Rs 500 Crore (Approx.) in 68 cities across 25 States/UTs under FAME India (Faster Adoption and Manufacturing of Hybrid & Electric Vehicles in India) Scheme Phase II.

3-Feb-2020: Performance of Fame India Scheme

In order to promote manufacturing of hybrid and electric vehicles and to ensure sustainable growth, Department of Heavy Industry formulated a scheme namely FAME India [Faster Adoption and Manufacturing of Hybrid & Electric Vehicles in India] for the initial period of 2 years commencing from 1st April 2015 (Phase-1). The Phase-I of the Scheme was extended from time to time and the last extension was allowed till 31st March 2019. The scheme is intended to support the hybrid/electric vehicle market development and its manufacturing eco-system to achieve self-subsistence. The scheme has four focus areas i.e. Technology Development, Demand Creation, Pilot Project and Charging Infrastructure.

In this Phase of the Scheme, about 2.8 lakh hybrid and electric vehicles are supported by way of demand incentive amounting to about Rs 359 crore resulting in saving of about 59 million liters of fuel and reduction of about 147 million Kg of CO2. Further, DHI has sanctioned 425 electric and hybrid buses to various cities in the country with the total budgetary support of (approx.) Rs. 280.00 crore. Out of 425 electric and hybrid buses, about 415 buses are plying on the road. The Department of Heavy Industry sanctioned about 500 Charging Stations/ Infrastructure for Rs.  43 Crore (approx.) in cities like Bangalore, Chandigarh, Jaipur and NCR of Delhi under Phase-I of FAME-India Scheme. In addition, specific projects under Pilot Projects, R&D/Technology Development and Public Charging Infrastructure components are sanctioned, for extending grant under the different focus areas of the scheme.

Based on outcome and experience gained during the Phase-I of FAME India Scheme and after having consultations with all stakeholders including Industry and Industry Associations, the Government notified Phase-II of FAME India Scheme on 8th March 2019, which is for a period of three years commencing from 1st April 2019 with a total budgetary support of Rs. 10,000 crore.  This phase will mainly focus on supporting electrification of public & shared transportation, and aims to support through incentives about 7000 e-Buses, 5 lakh e-3 Wheelers, 55000 e-4 Wheeler Passenger Cars and 10 lakh e-2 Wheelers. In addition, creation of charging infrastructure will be also supported to address range anxiety among users of electric vehicles.

An Inter-Ministerial Empowered Committee “Project Implementation and Sanctioning Committee (PISC)” headed by Secretary (Heavy Industry) has been set up for overall monitoring, sanctioning and implementation of the scheme. This committee have the power to sanction assistance for projects under the scheme and modify parameters for various components and sub components of the scheme including their outlay depending on emerging requirements with the overall objective of enhancing the coverage of e-mobility. This committee will also be the competent authority to decide other scheme parameters for smooth implementation of the scheme as well as to resolve issues as may come during implementation.

In addition, following initiatives were also taken up by the Government to promote electric vehicles use in various part of the country:

1. Under new GST regime, GST on EVS is reduced from existing 12% rate to 5% as against the 28% GST rate with Cess up to 22% for conventional vehicles.
2. Ministry of Power has allowed sale of electricity as ‘service’ for charging of electric vehicles. This would provide a huge incentive to attract investments into charging infrastructure.
3. The Government, vide S.O. 5333(E) dated 18th October, 2018 has also granted exemption to the Battery Operated Transport Vehicles and Transport Vehicles running on Ethanol and Methanol fuels from the requirements of permit.
4. The Government, vide draft GSR 430(E) dated 18th June 2019 has proposed exemption of registration fees for battery operated/electric vehicles to promote the use of eco-friendly vehicles in the country.
5. In the budget of 2019-20, the Hon’ble Finance Minister announced for providing additional income tax deduction of Rs 1.5 lakh on the interest paid on loans taken to purchase electric vehicles.

4-Jan-2020: Govt approves 2636 EV charging stations in Phase-II of Fame India Scheme

To give a further push to clean mobility in Road Transport Sector, the Department of Heavy Industries has sanctioned 2636 charging stations in 62 cities across 24 States/UTs under FAME India (Faster Adoption and Manufacturing of Electric Vehicles in India) scheme phase II.

As many as 317 EV charging stations have been allotted in Maharashtra, 266 in Andhra Pradesh, 256 in Tamil Nadu, 228 in Gujarat, 205 in Rajasthan, 207 in Uttar Pradesh, 172 in Karnataka, 159 in Madhya Pradesh, 141 in West Bengal, 138 in Telangana, 131 in Kerala, 72 in Delhi, 70 in Chandigarh, 50 in Haryana, 40 in Meghalaya, 37 in Bihar, 29 in Sikkim, 25 each in Jammu & Kashmir and Chhattisgarh, 20 in Assam, 18 in Odisha and 10 each in Uttarakhand, Puducherry and Himachal Pradesh.

The sanction letters to the selected entities will be issued in phases after ensuring the availability of land for charging stations, signing of necessary agreements/MoU with concerned partner organizations like city municipal corporation, Discoms and oil companies. Subsequently, each selected public entities are required to initiate the procurement process in a time bound manner for deployment of sanctioned charging stations.

Minister of Heavy Industries & Public Enterprises, Prakash Javadekar said that in future at least one charging station will be available in most of the selected cities in a grid of 4 Km X 4 km. He said it will boost the confidence of users of Electric Vehicles and also encourage the OEMs (Original Equipment Manufacturers) to launch the new electric vehicle models due to the lack of charging infrastructure.

Department of Heavy Industry had invited the Expression of Interest (EoI) from million-plus cities, smart cities, State/UT capitals and cities from special category states for submission of proposal for availing incentives under FAME India Scheme Phase II for deployment of EV charging infrastructure within Cities.

About 106 proposals from Public/Private Entities for the deployment of about 7000 EV charging stations were received. After evaluation of these proposals as per EoI, on the advice of Project Implementation and Sanctioning Committee (PISC) the Government sanctioned 2636 charging stations to 62 cities submitted by 19 public entities for 24 states. Out of these 2636 charging stations, 1633 Charging Stations will be Fast Charging Stations and 1003 will be slow charging stations. With this, about 14000 Charging Stations will be installed across the selected cities.

8-Aug-2019: Sanction for 5595 electric Buses under Fame Phase-II

The Department of Heavy Industry has approved the sanction of 5595 electric buses to 64 Cities, State Government Entities, State Transport Undertakings (STUs) for intra-city and intercity operation under FAME India scheme phase II in order to give a further push to clean mobility in public transportation.

The Department had invited the Expression of Interest (EoI) from million-plus cities, smart cities, State/UT capitals and cities from special category states for submission of proposal for deployment of electric buses on operational cost basis.

Eighty six proposals from 26 States/UTs for the deployment of 14988 e-Buses were received. After evaluation of these proposals as per EoI, on the advice of Project Implementation and Sanctioning Committee (PISC) the Government sanctioned 5095 electric buses to 64 Cities / State Transport Corporations for intra-city operation, 400 electric buses for intercity operation and 100 electric buses for last mile connectivity to Delhi Metro Rail Corporation (DMRC).

Each selected City/STUs is required to initiate the procurement process in a time bound manner for deployment of sanctioned electric buses on operational cost basis. As per EoI, buses which satisfy required localization level and technical eligibility notified under FAME India scheme phase II will be eligible for funding under FAME India scheme phase II.

These buses will run about 4 billion kilometers during their contract period and are expected to save cumulatively about 1.2 billion liters of fuel over the contract period, which will result into avoidance of 2.6 million tonnes of CO2 emission.

5-Apr-2019: NITI Aayog & RMI Release Technical Analysis of FAME II Scheme

The NITI Aayog and the Rocky Mountain Institute (RMI) released a report on opportunities for the automobile sector and government under the Faster Adoption and Manufacturing of Electric Vehicles II (FAME II) scheme.

The technical report titled ‘India’s Electric Mobility Transformation: Progress to Date and Future Opportunities’, quantifies the direct oil and carbon savings that the vehicles incentivized under FAME II will deliver. RMI is an Indian and global nonprofit organisation focused on driving the efficient and restorative use of resources.

The report also quantifies the catalytic effect that FAME II and other measures could have on the overall Electric Vehicle(EV) market. According to the analysis, if FAME II and other measures – in public and private space - are successful, India could realize EV sales penetration of 30% of private cars, 70% of commercial cars, 40% of buses and 80% of two and three-wheelers by 2030.

Extrapolating from the same, the lifetime cumulative oil and carbon savings of all electric vehicles deployed through 2030 could be many-fold larger than the direct savings from FAME II. For example, achieving these levels of market share by 2030 could generate cumulative savings of 846 million tonnes of CO2 over the total deployed vehicles’ lifetime.

The FAME II scheme, which was notified by the Union Cabinet in February 2019, aims to further accelerate the government of India’s commitment to a clean mobility future, sees the electrification of transportation as a primary focus area. FAME II intends to catalyze the market for faster adoption of EVs to ensure durable economic growth and global competitiveness for India’s automotive industry.

Key highlights from the report:

• Effects of FAME II will go beyond the vehicles that are eligible under the FAME II.
• There is considerable energy and CO2 savings associated with the two, three, and four-wheeled vehicles and buses covered by FAME II over their lifetime, as well as the potential savings associated with greater adoption levels by 2030.
• The electric buses covered under FAME II will account for 3.8 billion vehicle kilometers travelled (e-vkt) over their lifetime.
• In order to capture the potential opportunity in 2030, batteries must remain a key focal point as they will continue to be the key cost driver of EVs.
• Vehicles eligible under FAME II scheme can cumulatively save 5.4 million tonnes of oil equivalent over their lifetime worth Rs 17.2 thousand crores.
• EVs sold through 2030 could cumulatively save 474 million tonnes of oil equivalent (Mtoe) worth INR 15 lakh crore and generate net CO2 savings of 846 million tonnes over their operational lifetime.
• India needs auto industry's active participation to ease electric mobility transition. The auto and battery industries could collaborate to enhance customer awareness, promote domestic manufacturing, promote new business models, conduct R&D for EVs and components, consider new business models to promote EVs.
• Government should focus on a phased manufacturing plan to promote EVs, provide fiscal and non-fiscal incentives for phased manufacturing of EVs and batteries. Different government departments can consider a bouquet of potential policies, such as congestion pricing, ZEV credits, low emission/exclusion zones, parking policies, etc. to drive adoption of EVs.

India’s electric vehicle market is poised for growth with a blend of policies, such as FAME II, and the automotive industry’s willingness to provide new mobility solutions to the citizens of the country. Such a transformation will create enormous economic, social and environmental benefits for the citizens of India.

28-Feb-2019: Cabinet approves Scheme for FAME India Phase II

The Union cabinet chaired by the Prime Minister Shri Narendra Modi has approved the proposal for implementation of scheme titled 'Faster Adoption and Manufacturing of Electric Vehicles in India Phase II (FAME India Phase II)' for promotion of Electric Mobility in the country.

The scheme with total outlay of Rs 10000 Crores over the period of three years will be implemented with effect from 1st April 2019. This scheme is the expanded version of the present scheme titled 'FAME India1 which was launched on 1st April 2015, with total outlay of Rs. 895 crores.

Financial Implications: Total fund requirement for this scheme is Rs. 10,000 crores over three years from 2019-20 to 2021-22.

Impact: The main objective of the scheme is to encourage Faster adoption of Electric and hybrid vehicle by way of offering upfront Incentive on purchase of Electric vehicles and also by way of establishing a necessary charging Infrastructure for electric vehicles. The scheme will help in addressing the issue of environmental pollution and fuel security.

Details:

• Emphasis is on electrification of the public transportation that includes shared transport.
• Demand Incentives on operational expenditure mode! for electric buses will be delivered through State/city transport corporation (STUs).
• In 3W and 4W segment incentives will be applicable mainly to vehicles used for public transport or registered for commercial purposes.
• In the e-2Ws segment, the focus will be on the private vehicles.
• Through the scheme, it is planned to support 10 Lakhs e-2W, 5 Lakhs e-3W, 55000 4Ws and 7000 Buses.

To encourage advance technologies, the benefits of incentives, will be extended to only those vehicles which are fitted with advance battery like a Lithium Ion battery and other new technology batteries.

The scheme proposes for establishment of charging infrastructure, whereby about 2700 charging stations will be established in metros, other million plus cities, smart cities and cities of Hilly states across the country so that there will be availability of at least one charging station in a grid of 3 km x 3 km.

Establishment of Charging stations are also proposed on major highways connecting major city clusters.

On such highways, charging stations will be established on both sides of the road at an interval of about 25 km each.

27-Dec-2018: FAME - India Scheme

The National Electric Mobility Mission Plan 2020 was unveiled in 2013as part of the scheme FAME-India [Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India]. The scheme is being implemented over a period of 6 years till 2020.It will support the hybrid and electric vehicles market development and its manufacturing eco-system to achieve self-sustenance at the end of this period. Government of India is committed to instill confidence in the industry and allow them to plan required investments and create needed capacities. This will also enable the scheme to align with Government’s Make in India initiative.

The scheme focuses on four areas:

• Technology Development
• Demand Creation
• Pilot Projects
• Charging Infrastructure

The Phase-I of the scheme commenced from 1st April, 2015 and was extended till 31st March, 2018.

According to the National Automotive Board, under the Department of Heavy Industry Ministry, as of August 24, 2018 around Rs 264 crore worth of incentives were given out and a total of 226,557 vehicles benefited from the scheme.

The scheme is one of the green initiatives of the Government of India, which will be one of the biggest contributors in reducing pollution from road transport sector in the near future. This scheme is aimed at incentivizing all vehicle segments like 2-Wheelers, 3-Wheelers, 4-Wheeler Vehicles, Light Commercial Vehicles and Buses.

During 2017-18, following amendments were made in the FAME-India scheme:

• The Phase-I of the scheme was further extended for a period of 6 months i.e. upto 30.09.2017 and “Mild Hybrid” technology was excluded from benefits under FAME-India scheme
• Electric 3W (with maximum speed not exceeding 25 km/hr.) has also been included for availing incentive under the scheme
• L5 category has been included in the retro fitment category
• Fully Electric Bus has also been included for demand incentive under the scheme

During the financial year 2017-18, an amount of Rs. 175 crore was allocated for this scheme, out of which an amount of approx. Rs. 85.49 crore has already been utilized. Through this scheme about 1,54,000 electric & hybrid vehicles have been given direct support by way of demand incentives (total incentive amounting to Rs. 202.72 crore) since its launch on 1st April,2015 and till 30th September, 2017. During financial year 2017-18, from 1st April, 2017, nearly 16,000 vehicles were supported by demand incentive till 30th September, 2017.

Further, during financial year 2017-18, the Department approved the pilot projects of charging infrastructure and project of technological development worth Rs. 17.50 crore. Some of the projects approved are:

• 200 (150-AC & 50 DC) Charging Stations at Delhi, Jaipur and Chandigarh
• 75-AC Smart Chargers in NCR
• 60 DC-charging infrastructure
• pilot project for five electric buses at IGI Airport
• Design & Development of AC-DC Combined Public Charging Stations

12-Dec-2018: FAME-India Scheme

In order to promote manufacturing of electric and hybrid vehicle technology and to ensure sustainable growth of the same, Department of Heavy Industry is implementing FAME-India Scheme- Phase-I [Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India] from 1st April 2015.

The scheme, which was initially upto 31st April 2017, has been extended upto 31st March, 2019 or till Notification of FAME-II, whichever is earlier.

The Phase-II of the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME-India) Scheme proposes to give a push to electric vehicles (EVs) in public transport and seeks to encourage adoption of EVs by way of market creation and demand aggregation. The draft scheme envisages the holistic growth of EV industry, including providing for charging infrastructure, research and development of EV technologies and push towards greater indigenization. The scheme has not been finalized yet.

Total outlay of Phase-I of the FAME-India Scheme has been enhanced from Rs. 795 Crore to Rs. 895 Crore.

Under Demand Creation focus area, the purchaser of electric and hybrid vehicles is given an upfront reduction in purchase price by the dealer at the time of purchase of xEVs. Since inception of the scheme & till 6th December 2018, the Government has given financial support (demand incentive) to about 2,61,507 electric/ hybrid vehicles. 119 models of vehicles of 27 OEMs got registered under FAME-India Scheme for availing demand incentive.

Since inception of the scheme, several segments have been added to the scheme so as to ensure that more people take advantage of this scheme. In this spirit, support to fully electric buses have been added to the scheme to support electrification of public transport. The positive results of these efforts are borne out by the fact that DHI has so far sanctioned 455 electric buses for 9 cities in a pilot scheme launched on 31st October 2017, which got interest from 44 cities seeking 3144 e-buses.

There is no proposal from Government of India to invest in manufacturing of E-Buses. 100 % FDI by automatic route is permitted in the automobile sector. Further, automobile sector is in deregulated sector and both private sector and public sector are free to carry out investment in the automobile sector, including for manufacturing of Electric Vehicles and E-Buses.

The fund allocation made under this Scheme is given hereunder:

9-Dec-2022: 535 Railway stations are covered with 572 One Station, One Product outlets

Ministry of Railways has launched ‘One Station One Product’ (OSOP) scheme over Indian Railways with objectives to promote ‘Vocal for Local’ vision of the Government of India, provide a market for local/indigenous products and create additional income opportunities for the marginalised sections of society. Under the scheme, OSOP outlets at railway stations are allotted for showcasing, selling and giving high visibility to indigenous /local products. Allotment is done to all applicants on a rotation basis who meet objectives of the scheme. The pilot of the scheme was started on 25.03.2022 and presently 535 stations are covered with 572 OSOP outlets. Product  categories, under this scheme, include the following:

1. Handicrafts/ Artefacts
2. Textiles and Handlooms
3. Traditional Garments
4. Local agricultural produce/ Processed/semi processed foods.

30-Mar-2022: One Station One Product

‘One Station One Product’ concept aims to encourage indigenous and specialised products and crafts of India through providing display and sale outlets on railway stations across the country. The products would be specific to that place and could include artefacts made by indigenous tribes, handlooms by local weavers, handicrafts like world famous wood carving, chikankari and Zari-zardozi work on clothes, or spices tea, coffee and other processed/semi processed food items/products indigenously grown in the area.

Indian Railways intends to provide stall/ kiosk/ sale outlets at identified railway stations for sale and promotion of items sourced from local manufacturers to improve their skills and livelihood. Presently a pilot is under implementation and requirement of funds has not been assessed at this stage.

A pilot project has been launched w.e.f. 25.03.2022 on each Zonal Railway. One product indigenous to the respective locality/ region has been identified and it is envisaged to allot space on the station for sale of this product.

The details of State-wise stations that have been taken up for pilot project are Appended: