• The ministry of heavy industries has sanctioned 2,877 charging stations in 68 cities across 25 states/UTs under Phase-2 of FAME India scheme. As many as 1,576 EV charging stations have been sanctioned across 16 highways and nine expressways under this phase.

• As per the guidelines of the ministry of power, there shall be at least one charging station at every 25 km on both sides of the highway and also at least one charging station for long range/heavy duty EVs at every 100 km on both sides of the highway. For the city, at least one charging station will be set up in a grid of 3km x 3km.

• FAME India scheme envisages support for setting up of adequate public charging infrastructure to instill confidence among EV users, through active participation and involvement of various stakeholders including government agencies, industries, and Public Sector Enterprises (PSEs). 

• The ministry of heavy industries had sanctioned about 520 charging stations/infrastructure for about Rs 43 crore under Phase-1 of FAME India scheme. Further, a budget provision of Rs 1,000 crore has been earmarked for a period of five years (2019-20 to 2023-24) for establishment of charging infrastructure under Phase-2 of FAME India scheme.

FAME India scheme

• National Electric Mobility Mission Plan (NEMMP) 2020 was unveiled in 2013 with a target to achieve sales of 6-7 million electric/hybrid vehicles by 2020.

• As part of the mission, the department of heavy industry formulated a scheme — Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME India) to promote hybrid/electric technology in transportation so as to reduce dependence on fossil fuels. 

• The scheme is one of the most important green initiatives of the government of India, which will be one of the biggest contributors to reduction of pollution from the road transport sector.

• Phase-1 of the scheme was approved initially for a period of two years, commencing from April 1, 2015, with an outlay of Rs 795 crore. 

• It was intended to support the hybrid/electric vehicles market development and its manufacturing eco-system to achieve self-sustenance at the end of the stipulated period.

• The duration of phase 1 of the scheme was extended from time to time and the last extension was allowed up to March 31, 2019, with enhancement of total outlay to Rs 895 crore.

The scheme had four focus areas: 

1) Technology Development

2) Demand Creation

3) Pilot Project

4) Charging Infrastructure.

Achievements of Phase-1

• About 2.8 lakh electric/hybrid vehicles were incentivised with financial support of about Rs 360 crore.

• Projects worth Rs 158 crore sanctioned for technology development to various R&D and academic organisations/institutions through technology platforms for electric mobility along with the department of science and technology (DST).

• Sanctioned about Rs 361 crore for pilot projects including charging infrastructure projects. This includes sanction of 465 e-buses in 9 cities for Rs 301 crore.

Phase-2 of FAME India

• Based on the experience gained during Phase-1 of FAME India scheme and suggestions of various stakeholders, the department of heavy industry notified phase 2 of the scheme on March 8, 2019, with the approval of Cabinet. 

• Phase 2 of the scheme commenced on April 1, 2019 with an outlay of Rs 10,000 crore.

Highlights of the scheme:

• The main objective of the scheme is to encourage faster adoption of electric and hybrid vehicles by way of offering upfront incentives on purchase of electric vehicles and also by establishing the necessary charging infrastructure for electric vehicles.

• Demand incentives on the operational expenditure model for electric buses will be delivered through state/city transport corporation (STUs).

• Only advanced battery and registered vehicles will be incentivised under the scheme.

• In three-wheeler and four-wheeler segments, incentives will be applicable mainly to vehicles used for public transport or registered for commercial purposes.

• In the electric two-wheelers segment, focus will be on private vehicles. 

• The scheme aims to create demand by way of supporting 7,000 e-buses, 5 lakh electric-three wheelers, 55,000 electric-four wheeler passenger cars and 10 lakh electric two-wheelers.

• Creation of charging infrastructure will be supported in selected cities and along major highways to address range anxiety among users of electric vehicles under the scheme.

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