Question : FAME India Scheme

(a) whether the Government had assessed the progress and impact made by the Faster Adoption and Manufacturing of Hybrid & Electric Vehicles in India (FAME-India) Scheme in Phase 1;

(b) if so, the findings of the same;

(c) the rationale behind extension of Phase two of FAME Scheme by two years, till 31st March 2024;

(d) whether the COVID-19 pandemic had hampered the implementation of the scheme by lowering the demand for electric vehicles; and

(e) if so, the proposed new targets set by the Government and incentives provided for the same?

THE MINISTER OF STATE FOR HEAVY INDUSTRIES
(SHRI KRISHAN PAL GURJAR)
(a) & (b): Yes Sir, the evaluation of Phase-I of FAME Scheme was done by an independent consultant. The main findings of the validation of outcome report as submitted by consultant are given below:

(i) The Scheme has increased awareness which is in itself a notable achievement.

(ii) Overall outcomes of key parameters of Fuel saving and CO2 reduction are significantly below the target for FAME;

(iii) Industry players have been cautious about developing capabilities players have chosen to operate adjacent to their core capabilities.

(iv) Subsidy structure needs to be revised based on the power train technology (to incentivize cleaner technologies) and to establish parity across technologies.



Contd….2/-

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(c): Yes, Sir. The second phase of FAME-India Scheme has been extended for further two years to Achieve the FAME II targets within the fund allocation.

(d) & (e): Yes, Sir. COVID-19 pandemic disrupted the domestic/ global supply chains and the demand of electric vehicles.

The phase-II of FAME India Scheme focusses on supporting electrification of public & shared transportation and aims to support, through subsidies, approx. 7000 e-Buses, 5 lakh e-3 Wheelers, 55000 e-4 Wheeler Passenger Cars and 10 lakh e-2 Wheelers for a period of 5 years w.e.f. 01st April, 2019 with a total budgetary support of Rs. 10,000 crores. In addition, creation of charging infrastructure is also supported to address range anxiety among users of electric vehicles.

Further, the demand incentive under Phase II of FAME India Scheme has been increased to Rs. 15,000/KWh from Rs. 10,000/KWh with an increase in cap from 20% to 40% of the cost of vehicle from 11th June, 2021, thus enabling cost of Electric two wheelers at par with that of ICE two wheeler vehicles.

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