The scheme covers Hybrid & Electric technologies like Mild Hybrid, Strong Hybrid, and Plug in Hybrid & Battery Electric Vehicles.
|XEV Technology||Technology Definition|
|Advanced Batteries||Advance Battery’ represents the new generation batteries such as Lithium polymer, Lithium Iron phosphate, Lithium Cobalt Oxide, Lithium Titanate, Lithium Nickel Manganese Cobalt, Lithium Manganese Oxide, Metal Hydride, Zinc Air, Sodium Air, Nickel Zinc, Lithium Air and other similar chemistry under development or under use. In addition this battery should have specific density of at least 70 Wh/kg and cycle life of at least 1000 cycle.|
|Electric Regenerative Braking System||An integrated vehicle braking system which provides for the conversion of vehicle kinetic energy into electrical energy during braking.|
|Engine ‘Stop-Start’ arrangement||A system by which the engine is started or stopped in a hybrid electric vehicle by vehicle control unit at operating conditions depending upon traction power required for the propulsion of the vehicle.|
|Off Vehicle Charging (OVC)||Rechargeable Energy Storage System (ReESS) in the vehicle has a provision for external charging.|
|Hybrid Electric Vehicle (HEV)||A vehicle that for the purpose of mechanical propulsion draws energy from both of the following on-vehicle sources of energy/power:
|Strong Hybrid Electric Vehicle (SHEV)||A ‘Hybrid Electric Vehicle (HEV)’ which has an engine ‘Stop-Start’ arrangement, ‘Electric Regenerative Braking System’ and a ‘Motor Drive’ (motor alone is capable to propel/drive the vehicle from a stationary condition).|
|Plug-in HEV (PHEV)/ Range Extended Electric Vehicle (REEV)||A ‘Strong Hybrid Electric Vehicle (SHEV)’ which has a provision for ‘Off Vehicle Charging’ (OVC) of ‘Rechargeable Energy Storage System (ReESS)’.|
|Battery Electric Vehicle (BEV)||A vehicle which is powered exclusively by an electric motor; whose traction energy is supplied exclusively by traction battery installed in the vehicle; and has an ‘Electric Regenerative Braking System’.|
|S. No.||Name of the City||Number of Electric Stations|
The following steps are taken by the Central Government to make Electric vehicles more affordable.
Switching to hybrid mode or to electric vehicles will have benefits as it is environment friendly, lesser dependence on fossil fuels, no emissions, and usage of cleaner and greener energy.
The battery manufacturing industry in India can become bigger than the total amount spent on import of crude oil. This would provide a huge boost to the Indian economy.
There needs to be a careful plan to hand-hold mini and micro auto component industries, which employs large numbers of people. Many of these companies won’t survive as Electric Vehicles replaces petrol/diesel vehicles. Hence it is imperative to help them during the transition phase to EV components manufacturing.
European Climate Foundation has estimated that through reducing oil demand by more efficient electric cars, employment will increase by 5,00,000 to 8,50,000 by 2030.
As per one of the studies, net private and social benefits are estimated between $300 and $400 per Electric vehicle.
The revenue loss for governments from the taxes on the oil sector is expected to be replaced by higher tax revenues in other economic sectors.
EVs will create opportunities in durable and lightweight thermoplastics, higher demand for electricity, storage, and many others.
Electric Vehicles (EVs) are run by electric motors which are powered by energy stored in batteries. EVs have an electric motor instead of an Internal Combustion Engine (ICE). As an EV runs on electricity, the vehicle emits no exhaust from a tailpipe i.e. it has zero tail pipe emission and does not contain components, such as a fuel pump, fuel line, or fuel tank.
Battery design to strengthen EV’s is all about trade-offs across various metrics such as safety, cost, energy density and life span. Battery technology is progressing on several fronts. On the cost front, the trend is moving away from Cobalt, due to cost and safe mining concerns. Removing C (Cobalt) from NMC (Nickel-Manganese-Cobalt) chemistry has been a main focus of research. The numbers indicate the percentage of Nickel, Manganese and Cobalt in the cell, for e.g., NMC811 indicates 80% Nickel, 10% Manganese, and 10% Cobalt.On the safety front, solid-state electrolytes are replacing the flammable electrolytes, and significantly improving safety. In improving energy density (Wh/Kg), Silicon anodes and Lithium metal anodes are the key factors. There is also a move towards abundant materials with higher cycle life, resulting in resurgence of LFP chemistry. The energy density is also improving with NMC111 to NMC532 to NMC811.
In order to encourage the participation from the stakeholders in the segment the Government has offered various incentives. The scheme is proposed to be implemented by emphasizing on the following verticals:
The following initiatives have also been taken up by the Government of India for promotion of electric vehicles in the country –
The Government on 12th May, 2021 approved a Production Linked Incentive (PLI) scheme for manufacturing of Advanced Chemistry Cell (ACC) in the country in order to bring down prices of battery in the country. Drop in battery price will result in cost reduction of electric vehicles.
GST on electric vehicles has been reduced from 12% to 5%; GST on chargers/ charging stations for electric vehicles has been reduced from 18% to 5%.
Ministry of Road Transport & Highways (MoRTH) announced that battery-operated vehicles will be given green license plates and be exempted from permit requirements.
MoRTH issued a notification advising states to waive road tax on EVs, which in turn will help reduce the initial cost of EVs.
Purchase incentives for electric two-wheelers (E2W) were increased by 50% to 15,000 per kWh of battery capacity. The limit on this incentive was also relaxed from 20% of the ex-showroom price to 40% of the ex-showroom price.
Electric vehicles (EV) are significantly more expensive than comparable internal combustion engine (ICE) vehicles. EVs have higher upfront costs than ICE vehicles and reducing this cost is crucial in making them more attractive to buyers. Effective cost over the lifetime for electric vehicles is still less. The government offers different types of financial incentives to make electric vehicles more affordable for you. The key mechanisms have been listed below.
To avail of the benefits of Fame India Scheme’s latest phase, i.e. Phase II, applicants have to follow the steps mentioned below.
Step 1- Visit the official website of the Department of Heavy Industries, Ministry of Heavy Industries, and Public enterprises.
Step 2- Click on Fame India Phase II option.
Step 3- After that, an application form will appear on your screen.
Step 4- Fill up that form with relevant information and follow the instructions to complete the procedure.
Note: Applicants must follow the instructions given by the concerned department. Further, they must remember, there is no other way of applying for the Fame India Scheme.
Now that you know every detail of Fame India Scheme, you can opt for electric vehicles to ensure a greener and cleaner future for yourself and upcoming generations.
A vehicle that works on an electric motor instead of an internal combustion engine is called an Electric Vehicle. EVs are electric vehicles with rechargeable batteries which can be charged by electricity from an external source.
Electric Vehicles are useful as they reduce the harmful emission released by the engine-based vehicle. They can be very helpful in reducing air pollution in the atmosphere.
EVs include Plug in Hybrid Electric Vehicles (PHEVs) and Hybrid Electric Vehicles (HEVs) in addition to pure battery electric vehicles (BEVs). PHEVs use both -petrol / diesel and electricity. These vehicles have two power systems, an internal combustion engine and a battery. The battery can be recharged by plugging the vehicle into an external source. HEVs combine conventional ICE systems with electric propulsion systems.They use regenerative braking to convert energy that is normally wasted during braking into electricity. This electricity is stored in a battery. There are eight types of Electric Vehicles:
No, EV subsidies will not come to your bank directly. The OEMs can bill the vehicle eligible for the subsidy and the customer may avail the demand incentive in terms of reduced prices.
Fleet operators are eligible for the subsidy for commercial applications.
An individual may buy multiple EVs and avail the demand incentive applicable for each of them.
Yes, even corporates and organizations will receive the subsidy as per the government norms and FAME II.
Self capitalized vehicles will also get a subsidy on the EVs meeting the FAME II eligibility criteria.
To avail of benefits offered under the Fame India scheme, applicants have to provide address and identity proof.
The Incentive given in the Second Phase of the FAME India Scheme is through the reduction in the cost of the EVs so that the Vehicle becomes affordable. There is also an incentive in the form of subsidies.
FAME India Scheme is the second phase of the National Mission on Electric Mobility Plan. The Main purpose of the scheme is to advance in the eco-friendly vehicle Industry and reduce the pollution caused by fuel burning.
Electric Vehicles or EVs run on Electricity rather than the fuel. They only need charging stations to get their batteries charged for the run.
Two-wheeler Vehicles, three-wheeler Vehicles and Four wheeler vehicles are available under the scheme. The latest four-wheeler vehicles under the scheme are Electric buses and Electric Cars.
The incentive given under the scheme is in the form of an affordable price range for the customers and the additional subsidies provided along with it.
The candidates need to register themselves with the local authorities concerning the scheme to get the benefits of the scheme.
The interested Candidates need to visit the official website and Click on the Scheme tab, then they need to choose a Model option from the menu. The complete list of the new and old models will appear on the screen.
Yes, the basic fundamentals of the scheme are that of the Make in India Scheme. The purpose of the scheme is to make the Indian Automotive industry a pioneering one.
To promote the manufacture and use of electric vehicles in India, the Govt. of India has introduced the FAME II (Faster Adoption and Manufacturing of Electric Vehicles Phase II) subsidy. It is a benefit given to the purchaser of the electric vehicle in the form of an upfront price reduction. The FAME II subsidy amount would be a minimum of the following:
Any individual, who has a valid identity proof and has never claimed the FAME II subsidy before for an electric 2-wheeler, is eligible. The name on the identity proof must exactly match the name of registration.
The FAME subsidy will be factored in the scooter price, in case you are eligible for it, and will not have to be claimed separately.In case, at the document verification stage, you are found to be ineligible for the subsidy, you would have to pay the full price.
EVSE includes the electrical equipment external to the EV that provides a connection for an EV to a power source for charging and is equipped with advanced features like smart metering, cellular capability and network connectivity.
Conventional petrol / diesel vehicles and Compressed Natural Gas (CNG) vehicles contribute to particulate emissions which is a major reason for vehicular based emission. Battery operated vehicles have zero tailpipe and noise emissions.
An electric car having around 30 kWh battery pack takes less than 1 hour to be charged up to 80% of its battery capacity using Fast Charger (50 kW), while to attain similar percentage of charging, Slow / Moderate charger (15 A plug) takes around 8 hours.
The cost for a single charge (home charge) shall vary State to State as per notified State EV tariff and battery capacity of the vehicle. This can be estimated by the formula = Battery capacity (in kWh) X EV charging tariff (in / kWh)
An EV has a higher upfront cost of procurement as compared to its ICE counterpart. However, the cost of charging, maintaining and operating an EV is lower than the ICE vehicle which in turns reduces the Total Cost of Ownership (TCO) of an EV. For example, Tata Tigor and Tata Tigor EV have been considered for calculation. Tata Tigor has a claimed range of approximately 20 kms per litre. Assuming, a running of 100 kms, it would consume around 5 litres of petrol. Assuming that the cost of petrol of 86.95 per litre, as of 08 Feb 2021. Hence, the cost of travelling 100 kms is 434.75. Tata Tigor EV, with a total battery capacity of 21.5 kWh, the total cost of charging the EV would be 21.5 kWh x 4.5 per kWh (Assuming EV home charging tariff for Delhi), i.e. around 96.75. Hence it is economical to operate an EV than ICE vehicle.
EV can be charged either at PCS or at your home. Government is deploying PCS at a faster pace so that EV owners can charge their vehicles comfortably. Apart from this, many Oil Marketing Companies (OMCs) are setting up EV charging stations at their oil retail outlets / fuel pumps such that EV owners can easily locate charging stations.
A lot of technology providers (i.e. Network Service Providers) are developing mobile based applications which shall provide information about nearest public charging point location, expected waiting time and cost of charging.
All EV batteries go through rigorous testing procedures at National Accreditation Board for Testing and Calibration Laboratories (NABL) certified labs. Certification agencies in India like ARAI, ICAT certify EV and Chargers. Thus, it is safe to drive an EV.
Central as well as State governments have been promoting adoption of EVs by providing fiscal as well as non-fiscal incentives. Some of the incentives being provided on purchase of EVs are:
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 from 2019-20 to 2021-2022. Further the scheme has been extended for a further period of 2 years i.e. upto March 31, 2024
The FAME scheme was introduced in April 2012 to be implemented over a period of 6 years till 2020 to support hybrid/electric vehicles market development and its manufacturing. Under this scheme, demand incentives will be availed by buyers (end users/consumers) upfront at the point of purchase and the same shall be reimbursed by the manufacturers from Department of Heavy Industries, on a monthly basis. The Union government recently announced its decision to extend the second phase of the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme by two years to March 31, 2024.
The demand incentive benefit will be passed on to the consumer upfront at the time of purchase of the xEV itself by way of paying reduced price.
Presently scheme is applicable in selected areas like as notified separately broadly covering following cities:
Phase I of the scheme is a sort of pilot project just to see the reaction of people to the electric and hybrid vehicles. If this phase is successful, in next phase, scheme will be applicable throughout the country.
Yes, the demand incentive will be available for all types and self-capitalized vehicles as well.
Yes, the demand incentive will be applicable for fleet operators for commercial applications as well.
Yes, the OEM can bill the vehicle and customer may avail the demand incentive.
Yes, the incentive will be available to corporate and organizations also.
Yes, an individual may buy multiple xEVs and avail the demand incentive applicable for each of them.
The fact is that a typical conventional hatchback has 130-140 gm/km of CO2 emission comparing to an electric vehicle for 100 gm/km when charged by grid and when solar charged, there is ~0 gm/km CO2 emission from an electric vehicle.
No, there is no such condition in the present guidelines
Demand incentive under FAME India scheme is available only to vehicles that are regulated by the Central Motor Vehicle Rules (CMVR)and meet other qualifying criteria laid out in the FAME scheme. As such these vehicles meet all the safety regulations as applicable in the country.
No, as per scheme guidelines, incentive will be on reimbursement basis only after submission of claim. This claim required to be submitted only after sale of vehicles.
Some of the key concerned industry associations for automobiles and components are:
National Automotive Board is the apex body dealing with automotive sector.
The Ministry of Heavy Industries, Government of India, deals with areas related to vehicles and automotive parts. Entire Automotive industry falls under the concern of Heavy Industries Ministry.
The PLI Scheme for the auto sector envisages overcoming the cost disabilities of the industry for manufacture of Advanced Automotive Technology products in India. The incentive structure will encourage industry to make fresh investments for indigenous global supply chain of Advanced Automotive Technology products. It is estimated that over a period of five years, the PLI Scheme for Automobile and Auto Components Industry will lead to fresh investments of over 42,500 crores, incremental production of over 2.3 lakh crore and will create additional employment opportunities of over 7.5 lakh jobs. Further this will increase India’s share in global automotive trade. The Government notified the scheme in Sep’21. The scheme was closed on 9th Jan. MHI has processed the applications received under Champion OEM Incentive scheme and 20 applicants (along with their 12 subsidiaries) have been approved under this category of the scheme. Applications for Component Champion Incentive scheme are being processed separately.
IFCI Limited (IFCI), having its Registered and Head/ Corporate Office at IFCI Tower, 61 Nehru Place, New Delhi – 110019, has been appointed as PMA for the Scheme. Email ID of the PMA is email@example.com
The official portal of the Scheme is https://pliauto.in/. All the relevant information such as notifications on Scheme, Guidelines, FAQs, format of Application Form and List of Advanced Automotive Technology Products is available as public information on this portal. All applications are to be submitted through this online portal. The online application form shall be accessible after due registration by the applicant on the portal.
As per paragraph 5 of the notification dated 09/11/2021 regarding
the window for receiving applications through the Notice Inviting Applications will be open for a period of 60 days from the date of its publication in the official Gazette. Accordingly, the window for receiving Applications is already open with effect from 11th November, 2021 till 23:59:59 hours IST on 9th January, 2022.
Yes, as per clause 2.17 of the guidelines, such companies shall be treated as group companies under the Scheme.
No. Revenue/ investment/ net worth of individual promoters will not be considered under Global group revenue/ Global Investment/ Global net worth, respectively, for eligibility under the Scheme because the scheme recognizes company/ group company(ies), not individual promoters.
The capital expenditure on Engineering Research & Development (ER & D) and product design & development is allowed under the all be allowed for the purpose of Investment under the Scheme. The term “related” here refers to all stages in the entire value chain of scheme. It is further clarified that the Capital expenditure on ER & D and product design & development related to the eligible products shthe goods proposed to be manufactured including software integral to the functioning of the same. Such expenditure shall include expenditure on in-house and captive ER & D, directly attributable to eligible products, including all stages in the entire value chain of the goods proposed to be manufactured including software integral to the functioning of the same. Such expenditure shall include test and measuring instruments, prototypes used for testing, purchase of design tools, software cost (directly used for ER & D) & license fees, expenditure on technology & transfer of technology (ToT) Agreements including the purchase of technology, IPR, Patents and copyrights for ER & D, subject to all relevant documents for same being submitted to MHI/ PMA.
No. The expenditure on royalty is not covered under the scheme
Approved applicant (i.e. post receipt of Approval letter under the Scheme) shall apply for registration/ approval of their products as approved eligible Advanced Automotive Technology (AAT) products with Testing Agency of MHI on an ongoing basis.
An approved applicant under Champion OEM scheme will have option to seek incentive for any number of permissible AAT Vehicle products. Similarly, an approved applicant under Component Champion scheme will have option to seek incentive for any number of permissible AAT Component products. It may, however, be noted that Total Incentive per entire Group company(ies) is capped at 6,485crore (25% of total incentives outlay under this Scheme).
The information sought in the application form regarding AAT products is indicative only. There will not be any mention of AAT products in the approval letter to be issued by MHI/ PMA. The applicant once approved may change their selected AAT products at any time with intimation to MHI/ PMA. It may further be noted that post approval/ selection of applicant under the Scheme, the approved applicant will apply for registration of their products as eligible Advanced Automotive Technology (AAT) products to seek incentive in this scheme. Pre-approval of eligible product will be done by Testing Agency of MHI as AAT Product. Minimum 50% domestic value addition will be required. Applicant can register with Testing Agency for new AAT products on an ongoing basis.
Existing automotive manufacturing company (EAMC) applying under both Champion OEM Incentive scheme and Component Champion Incentive scheme, will have to meet minimum cumulative domestic investment condition of 2,000 crore for Champion OEM Incentive scheme and of 250 crore for Component Champion Incentive scheme i.e. 2,250 crore in aggregate, by March 31, 2027. Existing automotive manufacturing company applying under both Champion OEM Incentive scheme and Component Champion Incentive scheme will have to meet minimum threshold determined sales value of 125 crore for Champion OEM Incentive scheme and of 25 crore for Component Champion Incentive scheme in the first year (i.e. FY2021-22).
New Non-Automotive Investor Company (NNIC) applying under both Champion OEM Incentive scheme and Component Champion Incentive scheme, will have to meet minimum cumulative domestic investment condition of 2,000 crore for Champion OEM Incentive scheme and of 500 crore for Component Champion Incentive scheme i.e. 2,500 crore in aggregate, by March 31, 2027. New Non-Automotive Investor Company applying under both Champion OEM Incentive scheme and Component Champion Incentive scheme will have to meet minimum threshold determined sales value of 125 crore for Champion OEM Incentive scheme and of 25 crore for Component Champion Incentive scheme in the first year (i.e. FY2021-22).
The minimum new domestic investment condition is applicable for the eligibility of the applicant during the tenure of the scheme and it will be tested as per table at Para 3.2 (c) of the scheme. Further, as per para 2.19 of the guidelines, investment has to be made for eligible products under the Scheme. Accordingly, investment made for eligible products at consolidated level shall be considered for arriving at new domestic investment.