Electric Vehicle Incentives Under FAME India Scheme Reach 16.15 Lakh: Government

The government has announced that the number of electric vehicles (EVs) incentivized under the FAME India Scheme Phase-II has reached a total of 16,15,080 as of March 11.

The scheme, led by electric two-wheelers, has been a key driver in promoting the adoption of electric vehicles across the country.

Breakdown Of EV Incentives

According to Bhupathiraju Srinivasa Varma, Minister of State for Steel and Heavy Industries, the total number of incentivized vehicles includes:

• 14,28,009 electric two-wheelers (e-2Ws),
• 1,64,523 electric three-wheelers (e-3Ws),
• 22,548 electric four-wheelers (e-4Ws)

FAME India Scheme Phase-II Overview

The Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME India) Scheme Phase-II was implemented on April 1, 2019, with a total budgetary support of Rs 11,500 crore.

The scheme incentivizes the sale of electric two-wheelers, three-wheelers, and four-wheelers. Additionally, it provides grants for deploying electric buses and setting up EV public charging stations (EVPCS) across the country.

The government has sanctioned 6,862 electric buses for intra-city operations under the FAME-II Scheme.

As of February 28, 5,135 electric buses have been supplied.

Additionally, in March 2023, the Ministry of Heavy Industries sanctioned Rs 800 crore to three major oil marketing companies (OMCs) – Indian Oil Corporation Ltd (IOCL), Bharat Petroleum Corporation Ltd (BPCL), and Hindustan Petroleum Corporation Ltd (HPCL) – for the establishment of 7,432 public charging stations at their retail outlets nationwide.

In March 2024, the government allocated Rs 73.50 crore to upgrade 980 public charging stations and sanctioned 400 additional charging stations to various entities in different states.

Boosting Domestic Manufacturing In The EV Sector

The government has also approved several schemes aimed at boosting domestic manufacturing capabilities for electric vehicles and related components:

• The PLI-Auto Scheme, approved on September 9, 2021, has a budgetary outlay of Rs 25,938 crore and offers financial incentives to promote the manufacturing of advanced automotive technology (AAT) products with a focus on domestic value addition.
• The PLI Scheme for ACC Manufacturing, approved on May 12, 2021, with a budget of Rs 18,100 crore, aims to establish a competitive domestic ecosystem for the manufacturing of 50 GWh of Advanced Chemistry Cells (ACC) batteries.

The government introduced the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme in September 2023 with an outlay of Rs 10,900 crore to support electric vehicles, including two-wheelers, three-wheelers, electric trucks, buses, ambulances, and the expansion of EV public charging stations.

This scheme also includes funding for the upgrade of vehicle testing agencies.

In addition, the PM e-Bus Sewa-Payment Security Mechanism (PSM) Scheme, with a budget of Rs 3,435.33 crore, aims to deploy over 38,000 electric buses across India.

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