Lok Sabha Question No. 2697 (UNSTARRED), answered on 2019-07-09
Subject: FAME India Scheme
Ministry: HEAVY INDUSTRIES AND PUBLIC ENTERPRISES
Asked by: Chandra Sekhar Sahu

## HEAVY INDUSTRIES AND PUBLIC ENTERPRISES DEPARMENT OF HEAVY INDUSTRY

## LOK SABHA UNSTARRED QUESTION No. 2697 TO BE ANSWERED ON 09.07.2019

## FAME India Scheme

## 2697. SHRI CHANDRA SEKHAR SAHU:

Will the Minister of HEAVY INDUSTRIES AND PUBLIC ENTERPRISES be pleased to state:

(a) whether the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles in India (FAME) was launched on April 1, 2015 under the National Electric Mobility Mission Plan 2020 which aims to have six million green vehicles on Indian roads by 2020;

(b) if so, the details thereof and the funds earmarked and utilized under this scheme;

(c) whether the Government has made any assessment of the first phase of FAME;

(d) if so, the details and the outcome thereof;

(e)  whether  the  previous  incentives  were  not  enough  to  boost  sales  of  hybrid  and electric vehicles;

(f) if so, the reasons therefor;

(g) whether automakers and the industry body SIAM (Society of Indian Automotive Manufacturers)  have  initiated  discussions  with  the  Government  to  formalise  the second phase of FAME in the country; and

(h) if so, the details thereof?

## ANSWER

## THE MINISTER OF HEAVY INDUSTRIES & PUBLIC ENTERPRISES (SHRI ARVIND GANPAT SAWANT)

(a) & (b): Yes, Sir. The National Electric Mobility Mission Plan (NEMMP) 2020 is a National  Mission  document  providing  the  vision  and  the  roadmap  for  the  faster adoption of electric vehicles and their manufacturing in the country. As  part of the NEMMP 2020, Department of Heavy Industry formulated a Scheme namely Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME India) Scheme  in  the  year  2015  to  promote  manufacturing  of  electric  and  hybrid  vehicle technology and to ensure sustainable growth of the same. The Phase-I of this Scheme was initially launched for a period of 2 years, commencing from 1 st April 2015, which was subsequently extended from time to time and the last extension was allowed up to 31 st March  2019.  The  1 st Phase  of  FAME  India  Scheme  was  implemented  through four  focus  areas  namely  (i)  Demand  Creation,  (ii)  Technology  Platform,  (iii)  Pilot Project and  (iv)  Charging  Infrastructure.  Market    creation    through    demand incentives    was    aimed    at    incentivizing    all    vehicle  segments  i.e.  2-Wheelers,  3Wheelers  Auto,  Passenger  4-Wheeler  vehicles,  Light  Commercial  Vehicles  and Buses.  The  demand  incentive  was  available  to  buyers  of  xEV  in  the  form  of  an upfront reduced purchase price to enable wider adoption. Also, grants were sanctioned for specific projects under Pilot Projects, R&D/Technology Development and Public Charging Infrastructure components under the scheme. In the 1 st phase of

scheme, about 2.78 lakh xEVs were supported with a total demand incentives of Rs. 343 Crore [Approx].  In  addition,  465  buses  were  sanctioned  to  various  cities/states under  this  scheme.  The  details  of  funds  earmarked  and  utilized  under  Phase-I  of FAME India Scheme is tabulated below -

| S.No.   | Financial Year   | Fund Allocated   | Fund Utilization   |
|---------|------------------|------------------|--------------------|
| 1       | 2015-16          | Rs. 75 Crore     | Rs. 75 Crore       |
| 2       | 2016-17          | Rs. 144 Crore    | Rs. 144 Crore      |
| 3       | 2017-18          | Rs. 165 Crore    | Rs. 165 Crore      |
| 4       | 2018-19          | Rs. 145 Crore    | Rs.145 Crore       |
|         | TOTAL            | Rs. 529 Crore    | Rs. 529 Crore      |

(c)  &  (d) : 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) During the last 2 years, the agenda of clean mobility has been placed front and center in all discussions. The relatively increased awareness, 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 powertrain technology (to incentivize cleaner technologies) and to establish parity across technologies
- (v) Overall phased implementation plan has taken off but at the very slow pace, demonstrated limited progress in the first phase. The next phase of scheme extension should focus on a clear catch-up plan
- (vi) Benefits  from  unaccounted  segments  like  e-3W  and  e-rickshaws  can potentially  add  to  the  results,  however  growth  in  segments  like  erickshaws was unplanned. Support to these segments to be evaluated.

(e) & (f) : Under FAME Scheme Phase-I, the demand incentive amount was determined for each category (vehicle - technology - battery type) taking into account the principles of Total Cost of Ownership (TCO), Pay-back Period on account of fuel savings, cost of maintenance etc.

(g)  &  (h) : Based  on  the  experience  gained  during  Phase  1  of  FAME  Scheme  and suggestions of various stakeholders including industry associations, the Department of Heavy  Industry  notified  Phase-II  of  the  Scheme,  vide  S.O.  1300  dated  8th  March 2019, with the approval of Cabinet with an outlay of Rs. 10,000 Crore for a period of 3  years  commencing from 1 st April  2019.  The  details  of  the  scheme  is  available  in Department's website (www.dhi.nic.in).

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