Why in News?
- To promote manufacturing of electric and hybrid vehicle technology and to ensure sustainable growth of the same, Department of Heavy Industry is implementing FAME-India Scheme Phase – I [Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India] from 1st April 2015.
- The scheme was initially up to 31st April 2017, has been extended up to 31st March 2019 or till Notification of FAME-II, whichever is earlier.
- FAME India is a part of the National Electric Mobility Mission Plan. Main thrust of FAME is to encourage electric vehicles by providing subsidies.
- Vehicles in most segments – two wheelers, three wheelers, electric and hybrid cars and electric buses obtained the subsidy benefit of the scheme.
- FAME focuses on 4 areas i.e. Technology development, Demand Creation, Pilot Projects and Charging Infrastructure.
- Provide fiscal and monetary incentives for adoption and market creation of both hybrid and electric technologies vehicles in the country.
- Incentivise all vehicle segments, including two-wheelers, three wheeler auto, passenger four-wheeler vehicle, light commercial vehicles and buses.
FAME-India Scheme Phase – II:
- The scheme proposes to give a push to electric vehicles (EVs) in public transport and
- It seeks to encourage adoption of EVs by way of market creation and demand aggregation.
- 100% FDI by automatic route is permitted in the automobile sector.
- Further, the sector is deregulated, both private sector and public sector are free to carry out investment in the automobile sector, including for manufacturing of Electric Vehicles and E-Buses.