Question : FAME India Scheme

(a) whether the Government has launched Faster Adoption and Manufacturing of Hybrid and Electric Vehicles in India (FAME India) scheme in 2015;

(b) if so, the details and the number of electric vehicles sold since the launch of FAME India scheme in the country;

(c) whether the Government maintains performance data of the scheme and if so, the details thereof, State-wise;

(d) whether the Government has felt the need to further encourage the use of electric vehicles in the country; and

(e) if so, the details thereof and the steps being taken by the Government in this regard?

THE MINISTER OF HEAVY INDUSTRIES & PUBLIC ENTERPRISES
(SHRI PRAKASH JAVADEKAR)

(a) to (e): Yes, Sir. The Government has launched Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME India) Scheme in the year 2015 to promote adoption of Electrical Vehicles (EVs) with an aim to reduce dependency on fossil fuel. The Phase-I of this Scheme was initially launched for a period of 2 years, commencing from 1st April 2015, which was subsequently extended from time to time and the last extension was allowed up to 31st March 2019 with the total outlay of Rs. 895 Crore.
Based on outcome and experience gained during the Phase-I of FAME India Scheme and after having consultations with all stakeholders including Industry and Industry Associations, the Government notified Phase-II of FAME India Scheme on 8th March 2019, which is for a period of three years commencing from 1st April 2019 with a total budgetary support of Rs. 10,000 crore. This phase will mainly focus on supporting electrification of public & shared transportation, and aims to support through demand incentives about 7000 e-Buses, 5 lakh e-3 Wheelers, 55000 e-4 Wheeler Passenger Cars and 10 lakh e-2 Wheelers. In addition, creation of charging infrastructure will be also supported to address range anxiety among users of electric vehicles.

In the First Phase of the Scheme about 2.8 lakh hybrid and electric vehicles are supported by way of demand incentive. Further, DHI sanctioned 425 electric and hybrid buses to various cities in the country. Under Phase-II of FAME India Scheme, about 15,800 Electric Vehicles have been supported till 12.03.2020 by way of Demand Incentive. Further, 5595 electrical buses have been sanctioned to various State/ City Transport Undertakings under Phase-II of the Scheme. The performance data of the scheme state-wise in the country are available on the website of the Department i.e.www.fame-india.gov.in(for FAME I scheme)and www.fame2.heavyindustry.gov.in(for fame II).
In addition, following initiatives were also taken up by the Government to promote the use of electric/ hybrid vehicles (including shared mobility) in various parts of the country –

(i) Under the new GST regime, GST on EVs has been reduced from 12% rate to 5%.

(ii) Ministry of Power has allowed sale of electricity as ‘service’ for charging of electric vehicles. This would provide a huge incentive to attract investments into charging infrastructure.

(iii) The Government, vide S.O. 5333(E) dated 18th October, 2018 has also granted exemption to the Battery Operated Transport Vehicles and Transport Vehicles running on Ethanol and Methanol fuels from the requirements of permit.

(iv) In the budget of 2019-20, the Hon’ble Finance Minister announced provision of additional income tax deduction of Rs 1.5 lakh on the interest paid on loans taken to purchase electric vehicles.
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