Introduction
The FAME (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) scheme is a visionary initiative of the Government of India to reduce pollution, reduce petrol-diesel consumption and help build a sustainable future. Its main objective is to make electric vehicles (EVs) accessible to the people and make them affordable.
Today in this article we will understand in detail how the FAME scheme works, how it can be availed and how useful it is for the common citizen of India while purchasing an electric vehicle.
Practical examples of objectives
Let us understand the objectives of the FAME scheme in simple language:
Increasing the use of electric vehicles:
Loan: Ramesh ji bought an electric scooter instead of a petrol scooter, which he got ₹ 20,000 cheaper due to the FAME subsidy.
The result: ₹2,000 spent on petrol every month is now being spent on electricity worth ₹500.
Pollution reduction:
Every electric vehicle reduces 2.5 tonnes of CO2 emissions, which is equivalent to planting one tree every year.
Promoting local manufacturing:
Brands like Tata, Ola and Mahindra have started making EVs and their parts in India.
Creating charging infrastructure:
The government has set up 2,877 charging stations by 2023 and fast chargers are also being installed on highways.
How does the FAME scheme work?
FAME I (2015-2019)
- Budget: ₹895 crore
- Focus: Initial subsidy and awareness for EVs.
- Achievements:
- Subsidy for 2.8 lakh electric vehicles.
- 425 charging stations installed.
FAME II (2019-2024)
- Budget: ₹10,000 crore
- Focus: Development of public transport, shared EVs and charging infrastructure.
- Target:
- 7,000 electric buses
- 10 lakh electric two-wheelers
- 5 lakh electric three-wheelers
- 55,000 electric four-wheelers
FAME Scheme Breakdown (FAME I and FAME II)
| Aspect | FAME I (2015-2019) | FAME II (2019-2024) |
|---|---|---|
| Budget | ₹895 Crore | ₹10,000 Crore |
| Focus | Initial subsidy & awareness for EVs | Public transport, shared EVs, & charging infrastructure |
| Target | 2.8 Lakh electric vehicles | 7,000 electric buses, 10 Lakh two-wheelers, 5 Lakh three-wheelers, 55,000 four-wheelers |
| Subsidy for Two-wheelers | ₹10,000 per kWh | ₹10,000 per kWh |
| Subsidy for Electric Buses | N/A | Up to ₹45 lakh per bus |
| Charging Stations Built | 425 | 2,877 stations by 2023 |
| Primary Objective | Awareness & Initial adoption | Expansion of EV infrastructure & accessibility |
Subsidy breakdown (by battery capacity)
Have a look a detailed FAME subsidy breakdown for electric vehicles under the FAME II scheme, based on battery capacity:
| Vehicle Type | Subsidy per kWh of Battery Capacity | Example Calculation |
|---|---|---|
| Electric Two-Wheelers | ₹10,000 per kWh | A 3 kWh battery scooter would get ₹30,000 subsidy. |
| Electric Three-Wheelers | ₹15,000 to ₹22,000 per kWh (varies) | Subsidy depends on the vehicle model and usage. |
| Electric Four-Wheelers | ₹10,000 to ₹22,000 per kWh (varies) | Subsidy based on the battery capacity and type. |
| Electric Buses | Up to ₹45 lakh (fixed subsidy) | Focuses on public transport electric buses. |
Charging infrastructure details
- Fast charging stations are being set up in cities and on highways.
- Portable chargers and battery swapping stations are planned for rural areas.
- EV users should now be aware of mobile apps, providing location and availability of charging stations.
Impact of EV adoption
Environmental impact
- Pollution data: EVs are improving air quality; CO2 levels are declining in cities like Delhi and Mumbai.
- Sustainable development: With the use of renewable energy sources, EVs are becoming even more eco-friendly.
Economic impact
- Cost effectiveness: Operating cost of EVs: ₹1.2 per km
- Running cost of petrol cars: ₹7-8 per km
- Employment opportunities: New jobs are being created in manufacturing, battery production and charging stations.
Understand the challenges in a simple way
- High initial cost: The initial cost of EVs seems high for some people in terms of subsidies.
- Lack of charging infrastructure: Charging availability is still limited in rural areas.
- Lack of awareness: People are not aware of the benefits of EVs everywhere, so adoption is slow.
Comparative Analysis
Comparison of FAME scheme with some other countries:
- China: Subsidy and huge investment in charging infrastructure.
- Norway: 0% tax on EVs and free parking facility.
- India: Subsidy and promotion of local manufacturing are definitely being given for FAME.
Tips for Consumers
- Take advantage of subsidy: Check subsidy options with the dealer while buying electric scooters and cars.
- Planning EV charging station: Research the charging stations available in your city first.
- Eco-friendly decision: Replace diesel-petrol vehicles with EVs to contribute to reducing pollution.
Long-term outlook of FAME scheme
Chances of launch of FAME III
The future of FAME scheme is quite promising. Given the success of FAME II, the launch of FAME III is expected in 2024. This future version will promote even more electric mobility adoption, especially in rural areas and remote locations. Converting public transport to EVs can be a major focus of the upcoming scheme, so that electric vehicle infrastructure can be developed continuously in urban and rural areas.
Net-zero emission Goal
The FAME scheme will play a key role in India achieving its net-zero emission target by 2070. Adoption of electric vehicles will not only reduce CO2 emissions but will also lead to a shift towards clean energy, which will help in controlling the impact of long-term climate change. The FAME scheme aims to significantly increase the market contribution of EVs by 2030, which will help accelerate India’s sustainable development goals.
Role of Technology
The Future of Electric Vehicle Batteries
Lithium-ion battery options: Lithium-ion batteries are by far the most common choice for EVs, but supply chain issues and environmental impact have led to research on alternatives such as solid-state batteries and lithium-sulphur batteries. These batteries are lighter and more efficient, which can further improve the performance of EVs.
Battery recycling and disposal technologies: Recycling EV batteries is a major challenge. Companies are taking battery recycling very seriously these days. In the future, the use of second-life batteries and closed-loop recycling systems can reduce environmental impact.
Evolution of charging technology
- Fast charging: Fast charging stations are a must for EV owners. In the future, fast-charging technology can be made more efficient and widespread. Ultra-fast charging stations that will charge the battery up to 80% in 10-15 minutes can be a game-changer for consumers.
- Wireless charging: The concept of inductive charging (wireless charging) is also an emerging technology. This technology will help charge EVs without a plug-in charging station, which will increase convenience and efficiency.
how to Apply for the FAME Subsidy?
You do not need to submit a separate application to apply for the FAME subsidy; Subsidy is usually included in the price of an electric vehicle when you buy it from an eligible e vehicle manufacturer.
Key points to remember during buying EVs in India:
- No direct application: You don’t need to apply for the FAME subsidy yourself! It’s automatically applied when you purchase a qualifying electric vehicle from participating dealers. Just choose your EV, and the subsidy will be included in the final price!
- Check eligibility: Make sure the electric vehicle model you want is FAME-approved by checking the government’s official list here.
- State-level subsidies: Some Indian state provides state level subsidies. Many states in India offer subsidies and incentives to encourage the adoption of electric vehicles (EVs), including: Bihar, Haryana, Karnataka, and more.
Frequently Asked Questions (FAQs)
1.How do you get the benefits of the FAME scheme?
Answer- When you buy an EV, the required subsidy is automatically provided by the dealer, you can ask the dealer about the subsidy discount amount on ev.
2. Where will you find charging stations to charge ev?
Answer– Charging stations are being set up rapidly in India in rural areas as well as major highways and metro cities.
3. Is the FAME scheme subsidy for all vehicles?
Answer– As you learned in the article above, FAME subsidy is applicable for two-wheelers, three-wheelers and public transport vehicles.
4. Is it right to buy an EV in today’s time?
Answer– Yes, it is environmentally friendly and also saves money in the long run.
5. How long will the FAME scheme run?
Answer– The tenure of FAME II is till 2024, but the government may also launch new initiatives for the future.
Conclusion
The FAME scheme is an important initiative to drive the adoption of electric vehicles in India. It aims to reduce pollution and dependence on fossil fuels by offering subsidies and promoting infrastructure. With a focus on innovation in battery technology and fast charging, the scheme supports India’s long-term goal of achieving net-zero emissions by 2070.
Source of this Article: This information is taken from the official sources of the Ministry of Heavy Industries website.
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