New Delhi: The Indian government has provided substantial incentives for the sale of electric vehicles (EVs) as part of the second phase of the Faster Adoption and Manufacturing of Electric Vehicles (FAME II) scheme. Under this initiative, a total of 11,53,079 electric vehicles have been incentivized, receiving subsidies amounting to a noteworthy sum of Rs 5,228 crore.
The FAME II scheme, with an original outlay of Rs 10,000 crore over a five-year period starting from April 1, 2019, aims to accelerate the adoption of electric vehicles and support the development of a thriving electric mobility ecosystem in the country. The scheme encompasses subsidies for various types of electric vehicles, including 7,000 electric buses, 5,00,000 electric three-wheelers, 55,000 electric cars, and 10,00,000 electric two-wheelers. Additionally, it facilitates the establishment of charging infrastructure, further promoting the growth of electric mobility.
Recognizing the progress and potential of the FAME II scheme, the Ministry of Heavy Industries (MHI) conducted a year-end review in 2023 and revealed that electric vehicle manufacturers have received subsidies worth Rs 5,228 crore for the sale of over 11.53 lakh electric vehicles by December 1, 2023.
Several transportation entities, such as state transport undertakings, city transport undertakings, and municipal corporations, have actively participated in the FAME II scheme. They have placed orders for 3,390 electric buses, out of which 3,037 units have already been deployed. Additionally, a total of 3,472 electric buses are being processed through Convergence Energy Services Ltd (CESL) under the aggregation model of NITI Aayog. Among these, 454 buses have been deployed, ultimately resulting in a planned deployment of 6,862 electric buses across different states under the FAME II scheme.
Moreover, the scheme has also facilitated the installation of 148 EV public charging stations to cater to the growing demand for charging infrastructure.
Notably, on March 28, 2023, the Ministry of Heavy Industries sanctioned Rs 800 crore under the FAME II scheme to PSU oil marketing companies, namely Indian Oil, Bharat Petroleum, and Hindustan Petroleum. This allocation will be used to establish 7,432 public fast charging stations across the country.
In summary, the second phase of India’s FAME scheme has played a significant role in promoting the adoption of electric vehicles by providing substantial subsidies and supporting the development of charging infrastructure. With nearly 11.53 lakh electric vehicles incentivized and an encouraging deployment of electric buses, the scheme demonstrates the government’s commitment to fostering sustainable and eco-friendly mobility solutions.
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