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FAME India Scheme

FAME India Scheme

Introduced in the Union Budget of 2015-16, FAME India (Faster Adoption and Manufacturing of Electric Vehicles) aims to spark up electric transportation across the country. Think of it as the government’s way of giving a big green thumbs-up to electric vehicles. Phase 1 kicked off on April 1, 2015, and revved up until March 31, 2019, with about Rs. 895 Crore backing it up. Then came FAME 2, rolling out in April 2019 and cruising along till March 31, 2024, with a whopping Rs. 10,000 Crore fueling its engine.

The idea is to sweeten the deal for folks buying electric vehicles by offering them some financial perks. Yup, you read that right, subsidies! And it’s not just for Electric 2 Wheelers, but also for Electric 3 Wheelers, Electric 4 Wheelers, Electric Buses, and even for setting up those nifty charging stations. The whole shebang revolves around four key areas: spicing up the tech, drumming up demand, trying out new ideas, and making sure there are enough places to plug in and charge up.


In 2015-16, the Indian government launched the FAME India Scheme with the aim of speeding up the adoption and production of electric vehicles across the country. This initiative is all about making our roads cleaner and greener by encouraging people to switch to electric vehicles. As part of a broader initiative called the National Electric Mobility Mission Plan (NEMMP) – 2020, we’re working towards reducing vehicle pollution and decreasing our dependence on fossil fuels.

Run by the Department of Heavy Industry, FAME India offers incentives to both buyers and manufacturers to make electric vehicles more attractive and accessible. The newer version, FAME 2, doubles down on these efforts, focusing on building charging stations and boosting research and development in the electric mobility sector.


The objectives of the FAME India Scheme are –

  • To accelerate the adoption of electric vehicles by lessening the initial investment.
  • To encourage electric vehicle manufacturers, suppliers, and related providers to produce a greater number of electric automobiles in the country.
  • To reduce the country’s vehicular emissions and bring down the levels of air pollution.
  • To develop electric charging infrastructure across the country.
  • To convert 30% of overall transportation to electric vehicles by 2030.


The FAME India scheme is implemented in two phases.

Phase I Features:

  • The primary goal of Phase I was to enhance national fuel security through the promotion of hybrid and electric vehicles (EVs) across the country.
  • Phase I was operational from 2015 to 2019.
  • A total budget of Rs 895 Crore was earmarked for Phase I.
  • Phase I supported 2.8 lakh vehicles through demand incentives.
  • During this phase, 425 electric and hybrid buses were deployed nationwide.
  • Around 520 Charging Stations and Infrastructure were sanctioned within a span of four years.

FAME 2 Features:

  • Following the success of Phase I, FAME India scheme Phase II aimed for a more rapid proliferation of EVs by reducing upfront investment costs.
  • FAME 2 was set to run from April 2019 to March 2024, covering a span of five years. Initially slated for three years, it was later extended for an additional two years.
  • We significantly increased the budget outlay for Phase II to Rs 10,000 Crore.
  • Under Phase II, various demand incentives were introduced:
    • Two-wheeler vehicles are eligible for a demand incentive of Rs 15,000/KWh, capped at 40% of the vehicle’s cost.
    • Electric buses qualify for a demand incentive of Rs 20,000/KWh.
    • Other vehicle categories receive a demand incentive of Rs 10,000/KWh.
  • Phase II emphasizes the integration of renewable energy sources with charging infrastructure, fostering sustainability.
  • Charging stations will set up not just in metro cities and smart cities, but also in hilly and mountainous regions, as well as cities with populations exceeding one million across the nation.


The benefits of the FAME India Scheme are as follows –

  • The reduction of vehicular emissions will significantly decrease environmental pollution.
  • By implementing such schemes, India will achieve the target of net zero emission of carbon before 2070.
  • We’re going to roll out electric charging stations all across the country.
  • The citizens will avail of the incentives on the purchase of electric vehicles for personal use.
  • The dependence on oil imports will reduce the current account deficit and, hence the capital expenditure.
  • It will provide eco-friendly public transportation for citizens.

Read Also: Digital Health Incentives Scheme (DHIS)

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