Lok Sabha Question No. 310 (UNSTARRED), answered on 2021-07-20
Subject: FAME India Scheme
Ministry: HEAVY INDUSTRIES
Asked by: Hemant Tukaram Godse

## GOVERNMENT OF INDIA MINISTRY OF HEAVY INDUSTRIES

## LOK SABHA UNSTARRED QUESTION NO. 310

ANSWERED ON 20.07.2021

## FAME INDIA SCHEME

## 310. SHRI HEMANT TUKARAM GODSE:

Will the Minister of HEAVY INDUSTRIES भारी उद्योग मंत्री be pleased to state:

- (a) whether the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) Scheme 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, including the funds earmarked and utilized under this scheme;
- (c) whether the Government has made any assessment of the first phase of FAME, if so, the details and the outcome thereof;
- (d) whether  the  previous  incentives  were  not  enough  to  boost  sales  of  hybrid  and  electric vehicles, if so, the reasons therefor;
- (e) 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
- (f) if so, the details thereof?

## ANSWER

## THE MINISTER OF STATE FOR HEAVY INDUSTRIES (SHRI KRISHAN PAL GURJAR)

- (a)  & (b): 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,  the  Ministry  of  Heavy  Industries  formulated  a  Scheme namely  Faster  Adoption  and  Manufacturing  of  (Hybrid  &)  Electric  Vehicles  in  India  (FAME India)  Scheme  in  2015  to  promote  adoption  of  electric/  hybrid  vehicles  (xEVs)  in  India.    The Phase-1 of the scheme was available up to 31st March, 2019 with budget outlay of Rs 895 Cr.  In the 1 st phase of the scheme, about 2.8 lakh xEVs were supported with total demand incentives of Rs.  359  Crore  [Approx].    In  addition,  425  buses  were  deployed  as  sanctioned  to  various cities/states under this scheme.  Total fund utilized under the first phase of the FAME Scheme is about Rs 856 Crore as on 30 th June, 2021.

(c) : 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.

(d): 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.

(e) & (f): Based on outcome and experience gained during 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 for a period of three years commencing from  1 st Apri1,  2019  with  a  total  budgetary  support  of  Rs.  10,000  crore.  This  phase  mainly focuses  on  supporting  electrification  of  public  &  shared  transportation,  and  aims  to  support through demand incentive 7090 eBuses, 5 lakh e-3 Wheelers, 55000 e-4 Wheeler Passenger Cars and 10 lakh e-2 Wheelers. In addition, creation of charging infrastructure is also supported under the Scheme.

Under Phase-II of FAME India Scheme, 85,626 Electric Vehicles have been supported till 15.07.2021 by way of Demand Incentive amounting to about Rs. 254 Cr. Further, 6265 electrical buses have been sanctioned to various State/City Transport Undertakings under Phase-II of the Scheme.  The  Ministry  has  also  sanctioned  2,877  Electric  Vehicles  (EVs)  Charging  Stations amounting  to  Rs  500  Crore  (Approx.)  in  68  cities  across  25  States/UTs  under  FAME  India (Faster Adoption and Manufacturing of Hybrid & Electric Vehicles in India) Scheme Phase II.

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