Two Years, Rs 10,900 Crore Outlay...: FAME-II Scheme - Key Incentives

The government had implemented the FAME-II scheme for a period of five years, starting from April 1, 2019 to March 31, 2024. No incentives were given to electric vehicle (EV) manufacturers under this scheme.

However, concessions were provided to consumers (buyers/end users) in the forms of upfront reduction on the price at which the hybrid or electric vehicle was purchased. As a result, there was wider adoption of electric vehicles in the Indian domestic markets.

Additionally, these incentives were reimbursed to the original equipment manufacturers (OEMs) by the Government of India.

What Were The Incentives Under the FAME-II Scheme?

Under FAME-II Scheme, the central government has encouraged various measures to encourage EV adoption like demand-supply incentives/subsidies, tax rebates, and the development of EV charging infrastructure.

Consequently, the number of electric vehicles registered in India in FY 2023-24 has increased by 9.68 times compared to FY 2019-20. However, no such evaluation has been conducted for rural areas.

Further, to sustain the benefits of the FAME-II scheme, the Ministry of Heavy Industries (MHI) announced the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme on 29th September, 2024.

The PM E-DRIVE scheme is a two-year scheme with an outlay of ₹10,900 crore. Not only does it support e-2W, e-3W, e-buses, and EV public charging infrastructure, but it also supports e-Trucks, e-Ambulances, and upgradation of vehicle testing agencies.

Minister of State (MoS) for Heavy Industries and Steel, Bhupathiraju Srinivasa Varma informed the Lok Sabha today in a written reply.