Incentives on electric vehicles in India- FAME 2 Subsidy

Incentives on electric vehicles in India- FAME 2 Subsidy - Introduction

The National Electric Mobility Mission Plan (NEMMP) 2020 was launched by the Government of India in 2013 to achieve national fuel security by promoting electric and hybrid vehicles. The target was to achieve sales of 6 – 7 million in the hybrid and electric vehicles sector from 2020. The government will provide fiscal and monetary incentives for this industry. The expectation is that crude oil worth 62000 crore will be saved due to this.Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME-India) Scheme is launched under National Mission on Electric Mobility in 2011/ National Electric Mobility Mission Plan 2020, unveiled in 2013. The scheme aims to encourage progressive induction of reliable, affordable and efficient electric and hybrid vehicles (xEV). The First Phase of the scheme was initially approved for a period of 2 years, commencing from 1st April, 2015. The Scheme has been extended from time to time, with the last extension allowed for a period up to 31st March 2019. It is under the frame work of Demand Incentive Disbursement Mechanism. Incentive amount has been determined for each category of vehicle like Mild Hybrid, Strong Hybrid, Plug-in Hybrid and Pure Electric technologies and battery specification. It is implemented and monitored by National Automotive Board under D/o Heavy Industry. It is one of the DBT schemes categorized under in-kind mode.FAME India is a part of the National Electric Mobility Mission Plan. Main thrust of FAME is to encourage electric vehicles by providing subsidies. The FAME India Scheme is aimed at incentivizing all vehicle segments.

The scheme covers Hybrid & Electric technologies like Mild Hybrid, Strong Hybrid, and Plug in Hybrid & Battery Electric Vehicles.