Faster Adoption and Manufacturing of EVs (FAME): India’s Push Toward Greener Mobility

India is experiencing a revolutionary change in the way people travel, and electric mobility is at the center of it. Being one of the world's highest polluters of greenhouse gases, the nation has been working hard to curtail carbon emissions and support green mobility in a consistent fashion. One of the biggest steps in this direction has been the launch of the FAME India Scheme - an ambitious initiative by the government to accelerate the adoption of electric vehicles (EVs) and build the ecosystem required for greener mobility.

In this blog, we’ll understand what the FAME scheme is, why it matters, its benefits, key phases, and how it’s shaping India’s transportation future.

What is the FAME India Scheme?

The FAME India Scheme is an acronym for Faster Adoption and Manufacturing of Hybrid and Electric Vehicles. It was introduced by the Government of India in 2015 under the National Electric Mobility Mission Plan (NEMMP) to encourage the consumption of electric and hybrid vehicles within the nation.

The scheme's primary aim is to:

• Decrease dependency on fossil fuels.

• Minimize vehicle emissions.

• Develop charging infrastructure.

• Make EVs affordable with financial incentives.

• Promote indigenous production of EVs and ancillary parts.

Why FAME is Relevant to India?

India has several transport-related issues:

• Increasing Pollution - Major Indian cities keep appearing on the list of most polluted cities in the world.

• Excessive Oil Imports - India imports over 85% of its crude oil requirements.

• Climate Pledges - India has committed to reduce its carbon footprint and reach net zero by 2070.

FAME India Scheme is addressing these challenges by:

• Promoting electric mobility as a replacement.

• Facilitating Make in India through the promotion of EV production.

• Minimizing the overall carbon footprint of transportation.

Phases of the FAME Scheme

FAME India Scheme is being rolled out in two phases, both addressing certain challenges and promoting EV adoption.

Phase I (2015 – 2019)

• Budget: ₹895 Crore

• Target: Developing awareness, giving financial incentives on EVs, and encouraging R&D.

• Outcome:

• More than 2.8 lakh EVs were benefited with demand incentives.

• Commenced charging infrastructure development.

• Increased domestic EV component production.

Phase II (2019 - Till Date)

• Budget: ₹10,000 Crore

• Timeline: 3 years, extended until March 2024.

• Focus:

• Electrifying broad segments of two-wheelers, three-wheelers, and buses.

• Scaling up the charging infrastructure.

• Benefiting fleet operators and public transport buses.

• Key Achievements:

• Subsidized over 7 lakh EVs.

• Sanctioned 7,432 electric buses for state transport ventures.

• Established more than 2,900 charging stations across the country.

EVs Under FAM

FAME has incentives and benefits for a variety of electric vehicles like:

• Two-wheelers - Electric scooters and motorcycles.

• Three-wheelers - E-rickshaws and cargo carriers.

• Four-wheelers - Personal and commercial automobiles.

• Electric Buses - Used in mass transit.

FAME Benefits to Consumers

One of the main challenges to the adoption of EVs is the upfront cost, which is far greater than that of conventional petrol or diesel vehicles. FAME remedies this by offering financial incentives that lower the cost of EVs.

For instance:

• Electric two-wheelers are incentivized up to ₹15,000 per kWh.

• Electric vehicles and buses get even more incentives.

• Lower road tax and registration charges in most states.

This makes EVs a more viable and desirable option for Indian consumers.

Building the EV Ecosystem

Electric mobility only succeeds with an entire ecosystem, and not just EVs. In FAME, the government is:

• Putting quick-charging stations along highways and in cities.

• Promoting battery swap technology.

• Facilitating research and development in producing superior EV batteries.

• Erasing local manufacturing with the Make in India movement.

In all of this, India seeks to create an indigenous EV economy that reduces import dependency and increases the level of innovation.

Impact Till Now

FAME India Scheme has already begun to show promising results:

• Rampant growth in sales of EVs - India has sold more than 1.5 million EVs in 2023.

• Public transport turned clean - Delhi, Mumbai, and Bengaluru are adding thousands of electric buses.

• Financial benefits - Windfall to local industries, employment in battery manufacturing, and EV manufacturing.

• Cleaner air - The cities covered under EV buses and rickshaws are observing a significant reduction in emissions.

Challenges Ahead

Though FAME has come a long way, India still lags behind:

• Battery prices are very high - Lithium-ion batteries cost a lot and are mostly imported.

• Poor charging infrastructure - Rural areas are still lacking proper facilities.

• Knowledge gap - Gap in EV benefits and subsidy awareness.

• Adoption of technology - Fostering efficiency and compatibility in charging systems.

The Road Ahead

India is marching forward on the path to green mobility, and FAME will continue to be a critical element in bringing this transition into reality. The government has the goals of:

• Roll out FAME Phase II and start Phase III in the near future.

• Switch the focus from import substitution to local production of batteries under programs such as PLI (Production Linked Incentives).

• Target 30% EV penetration by 2030.

• Uniform the country to a fast-charging network to push range anxiety out.

Conclusion

FAME India Scheme is not a policy; it's a movement towards living sustainably. With an impetus for EVs, infrastructure, and domestic production, the scheme is building a cleaner, greener, and atmanirbhar India.

With consumers, businesses, and the government joining hands, India's roads are going to be quieter, cleaner, and pollution-free - electric vehicle by electric vehicle.