In a significant push towards a sustainable future, the Union government has provided substantial incentives under the second phase of the Faster Adoption and Manufacturing of Electric Vehicles (FAME II) scheme. The government’s commitment to electrifying public and shared transportation is evident in the incentivization of 11,53,079 electric vehicles (EVs) with subsidies amounting to a noteworthy Rs 5,228 crore.
The FAME II scheme, launched with an outlay of Rs 10,000 crore over five years from April 1, 2019, aims to support the electrification of various modes of transportation. The scheme includes provisions for subsidies on 7,000 electric buses, 5,00,000 electric three-wheelers, 55,000 electric cars, and 10,00,000 electric two-wheelers. Additionally, the creation of charging infrastructure is a key focus under FAME II.
The Ministry of Heavy Industries (MHI) revealed the success of the scheme in its year-end review for 2023. As of December 1, 2023, subsidies totaling Rs 5,228 crore have been granted to electric vehicle manufacturers for the sale of 11,53,079 electric vehicles.
Notable achievements under FAME II include the placement of supply orders for 3,390 electric buses by state transport undertakings, city transport undertakings, and municipal corporations. Out of these, 3,037 units have already been deployed. Another 3,472 electric buses are under consideration through Convergence Energy Services Ltd (CESL), with 454 units already deployed.
Moreover, the scheme has seen the commissioning of 148 EV public charging stations, contributing to the growth of the EV charging infrastructure across the country.
In a strategic move on March 28, 2023, the Ministry of Heavy Industries sanctioned Rs 800 crore under FAME II to PSU oil marketing companies – Indian Oil, Bharat Petroleum, and Hindustan Petroleum. This funding is intended for the establishment of 7,432 public fast charging stations nationwide, further reinforcing the commitment to sustainable and electric mobility.
The success of FAME II reflects a positive trajectory for the adoption of electric vehicles and the development of essential charging infrastructure in India.
