The National Electric Mobility Mission Plan (NEMMP) 2020 was launched by the Government of India in 2013 to achieve national fuel security by promoting electric and hybrid vehicles. The target was to achieve sales of 6 – 7 million in the hybrid and electric vehicles sector from 2020. The government will provide fiscal and monetary incentives for this industry. The expectation is that crude oil worth 62000 crore will be saved due to this.Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME-India) Scheme is launched under National Mission on Electric Mobility in 2011/ National Electric Mobility Mission Plan 2020, unveiled in 2013. The scheme aims to encourage progressive induction of reliable, affordable and efficient electric and hybrid vehicles (xEV). The First Phase of the scheme was initially approved for a period of 2 years, commencing from 1st April, 2015. The Scheme has been extended from time to time, with the last extension allowed for a period up to 31st March 2019. It is under the frame work of Demand Incentive Disbursement Mechanism. Incentive amount has been determined for each category of vehicle like Mild Hybrid, Strong Hybrid, Plug-in Hybrid and Pure Electric technologies and battery specification. It is implemented and monitored by National Automotive Board under D/o Heavy Industry. It is one of the DBT schemes categorized under in-kind mode.FAME India is a part of the National Electric Mobility Mission Plan. Main thrust of FAME is to encourage electric vehicles by providing subsidies. The FAME India Scheme is aimed at incentivizing all vehicle segments.
The scheme covers Hybrid & Electric technologies like Mild Hybrid, Strong Hybrid, and Plug in Hybrid & Battery Electric Vehicles.
Under the digitalization of the schemes for bringing efficiency, transparency with effective monitoring, FAME India portal has been launched at http://fame-india.gov.in/index.aspx. All the process life cycle of the scheme has been digitalized in this online Portal. At present Thirty Original Equipment Manufacturer (OEM), One Hundred Thirty Seven Models of all categories of vehicles are registered under this scheme. Till now Total incentive amount disbursed is about 359 Crores for 2.8 Lakhs vehicles. Dash board shows its state-wise performance.
It also reflects post benefit of e-vehicles, sold under the Scheme. Total expected Fuel saved due to electrification is about 50 million Litres, Fuel saving per day is about 52,700 In Litres, CO2 Reduction per day is about 1.3 Lakh Kg and total CO2 Reduction is about 129 million Kg. Built-in MIS reports are also made available for monitoring and management purpose. Various reports like OEM-wise sanctions, state-wise / manufacturer- wise/ month-wise progress etc are also incorporated for restricted users. As per the DBT compliance, integration of online Demographic Aadhaar Authentication of the beneficiaries is also being enabled.In 2013, India unveiled the ‘National Electric Mobility Mission Plan (NEMMP) 2020’ to make a major shift to electric vehicles and to address the issues of national energy security, vehicular pollution, and growth of domestic manufacturing capabilities. The scheme was to offer subsidies and create supporting infrastructure for e-vehicles.
Government has approved Phase-II of FAME Scheme with an outlay of 10,000 Crore for a period of 3 years commencing from 1st April 2019 which is now extended till 2024. Out of total budgetary support, about 86 % of fund has been allocated for Demand Incentive so as to create demand for xEVs in the country. This phase aims to generate demand by way of supporting 7000 e-Buses, 5 lakh e-3 Wheelers (e-3W) on providing affordable & environment friendly public transportation options for the masses, scheme will be applicable mainly to vehicles used for public transport or those registered for commercial purposes in e-3W, e-4W and e-bus segments. However, privately owned registered electric two-wheelers (e-2Ws) are also covered under the scheme as a mass segment. Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME II), is a scheme launched by the Government of India to give a boost to development of Electric Vehicles. This is important considering the efforts to combat climate change across the globe. The Government of India has allocated a budget of 10,000 crores for the second phase of this scheme. This scheme was launched to achieve the goals of National Electric Mobility Mission Plan (NEMMP). Phase I lasted from 2015 to 2019 and Phase II of FAME was launched in 2019 and is expected to be completed by 2024.The Central government has increased the subsidy under the second phase of the FAME India scheme on electric two-wheelers by 50 %. The subsidy will now be 15,000 per kWh for electric two-wheelers under FAME India phase II. Earlier, it was Rs 10,000 per kWh. Additionally, the cap on subsidy for an electric two-wheeler will be 40 % of its cost, up from 20 % earlier
Some of the key features of the FAME II scheme are given below.
As stated earlier, FAME India Scheme operates in two phases. These are,
Phase I: The first phase of FAME India Scheme started in 2015 and was functional till 31st March 2019.
Phase II: The second phase of this scheme started in April 2019 and will continue till 31st March 2022.
Note: The Government has decided to further extend Fame India Scheme Phase II till 31st March 2024.
Features of Phase I of FAME India Scheme | Features of Phase II of FAME India Scheme |
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XEV Technology | Technology Definition |
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Advanced Batteries | Advance Battery’ represents the new generation batteries such as Lithium polymer, Lithium Iron phosphate, Lithium Cobalt Oxide, Lithium Titanate, Lithium Nickel Manganese Cobalt, Lithium Manganese Oxide, Metal Hydride, Zinc Air, Sodium Air, Nickel Zinc, Lithium Air and other similar chemistry under development or under use. In addition this battery should have specific density of at least 70 Wh/kg and cycle life of at least 1000 cycle. |
Electric Regenerative Braking System | An integrated vehicle braking system which provides for the conversion of vehicle kinetic energy into electrical energy during braking. |
Engine ‘Stop-Start’ arrangement | A system by which the engine is started or stopped in a hybrid electric vehicle by vehicle control unit at operating conditions depending upon traction power required for the propulsion of the vehicle. |
Off Vehicle Charging (OVC) | Rechargeable Energy Storage System (ReESS) in the vehicle has a provision for external charging. |
Hybrid Electric Vehicle (HEV) | A vehicle that for the purpose of mechanical propulsion draws energy from both of the following on-vehicle sources of energy/power:
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Strong Hybrid Electric Vehicle (SHEV) | A ‘Hybrid Electric Vehicle (HEV)’ which has an engine ‘Stop-Start’ arrangement, ‘Electric Regenerative Braking System’ and a ‘Motor Drive’ (motor alone is capable to propel/drive the vehicle from a stationary condition). |
Plug-in HEV (PHEV)/ Range Extended Electric Vehicle (REEV) | A ‘Strong Hybrid Electric Vehicle (SHEV)’ which has a provision for ‘Off Vehicle Charging’ (OVC) of ‘Rechargeable Energy Storage System (ReESS)’. |
Battery Electric Vehicle (BEV) | A vehicle which is powered exclusively by an electric motor; whose traction energy is supplied exclusively by traction battery installed in the vehicle; and has an ‘Electric Regenerative Braking System’. |
Scheme for Faster Adoption and Manufacturing of Electric Vehicles in India Phase II (FAME India Phase II) is proposed to be implemented through the following verticals:
The breakup of fund allocation year wise, component-wise, for the scheme’s duration is given below – (All amounts are in Crore)
Sr. No. | Component | 2019-20 | 2020-21 | 2021-22 | Total Fund requirement in crores |
1 | Demand Incentives | 822 | 4587 | 3187 | 8596 |
2 | Charging Infrastructure | 300 | 400 | 300 | 1000 |
3 | Administrative Expenditure including Publicity, ICE activities | 12 | 13 | 13 | 38 |
Total for FAME-II | 1134 | 5000 | 3500 | 9634 | |
4 | Committed expenditure of Phase – | 366 | 0 | 0 | 366 |
Total | 1500 | 5000 | 3500 | 10000 |
Project Implementation and Sanctioning Committee (PISC) shall be the competent authority to modify fund allocations among different segments and different types of vehicles. This flexibility in the budget will be exercised depending upon the take off in the different components as well as within different sub components of the scheme.
Department of Heavy Industry (DHI) shall be the nodal Department in Government of India and shall be responsible for planning, implementation and review of the scheme. DHI shall be the nodal agency for addressing issued related to the guidelines and for removal of difficulties in the implementation of the scheme. DHI shall issue guidelines as and when necessary in order to meet such objectives of the scheme.
Demand incentives are an important component of the scheme which directly helps in demand generation of electric vehicles by way of reducing the cost of acquisition of such vehicles. Demand incentive shall be available for consumers (buyers/end users) in the form of an upfront reduced purchase price of hybrid and electric vehicles to enable wider adoption, which will be reimbursed to the OEM by Government of India.
Following categories of vehicles shall be eligible for demand incentives.
Keeping in view the fact that cost of batteries is one of the main factors of difference in acquisition price of xEVs and ICE vehicles, the demand incentive would be based on battery capacity (i.e. energy content measured in Kw-Hr) used in the such vehicles. Keeping in view market and technology trends in batteries, PISC may revise the Demand Incentive and target number of vehicles from time to time.With greater emphasis on providing affordable and environmentally friendly public transportation options for the masses, scheme will be applicable mainly to vehicles used for public transport or those registered for commercial purposes in 3W, 4W and Bus segments. However, privately owned registered 2Ws will also be covered under the scheme as a mass segment.Vehicles, which are registered as “Motor Vehicle” as per the Central Motor Vehicle Rules (CMVR) shall only be eligible for the incentives.Vehicles fitted with only advanced batteries satisfying certain performance criteria will only be eligible for the demand incentives under this scheme, and for this purpose ‘Advanced Batteries’ will be defined separately under the scheme.
In order to rationalize the incentives across segments and across vehicle technologies, it is initially proposed to extend uniform demand incentive @ 10000/- per KWh for all vehicles (including PHEV and Strong Hybrid) except Buses. This will be subject to review and revision by PISC.To encourage public transport, for buses, initial uniform maximum demand incentives @ 20000/- per KWh is proposed subject again to review and revision by PISC. The amount of incentives for buses may further be subject to competitive bidding among the Original Equipment Manufacturers (OEMs) conducted by public sector transport undertakings for intra-city, inter-city or inter-State buses based on OPEX model.
The proposed incentives as stated above would be reviewed annually or earlier by the PISC based on price trends for various components and assemblies and market parameters of vehicles. It shall allow the scheme to leverage limited budgetary funds for larger number of vehicles, within the overall outlay so as to provide economies of scale to the industry for sustainable manufacturing.Demand Incentives for electric buses will be provided only on operational expenditure model adopted by State/city transport corporation (STUs) and other public entities working in the transport sector to augment the fleet of electric vehicles.
To meet the qualifying criteria for the demand incentives, the hybrid /electric vehicle (xEVs) including its variants and versions, should
The demand incentive for all segments, except buses shall be disbursed through an e-enabled framework and mechanism set-up under DHI. The manufacturers of vehicles (OEMs or Original Equipment Manufacturers) will submit their claims for reimbursement of demand incentive on monthly basis to the Department of Heavy Industry for settlement.
The Scheme envisages support for setting up of adequate public charging infrastructure to instill confidence amongst EV users, through active participation and involvement of various stakeholders including Government agencies, industries, and Public Sector Enterprises (PSEs).All these charging infrastructures will be established as per Ministry of Power Notification vide No. 12/2/2018-EV dated 14th Dec 2018 on the subject “Charging Infrastructure for Electrical Vehicles - Guidelines and Standards” and as amended from time to time.In addition, for charging of electric buses, it is proposed to provide to the buyer one slow charger per e-bus and one fast charger for every 10 electric buses to be funded under the scheme.Flexibility of funding for establishment of charging infrastructure to the extent of 100% of cost depending upon the project proposal shall be available for promoting electric mobility.Projects for charging infrastructure will also include infrastructure projects required for extending electrification for running of vehicles like pantograph charging, flash charging etc.Inter-linking of renewable energy sources with charging infrastructure, smart grid, and use of ICT etc. shall be encouraged.
S. No. | Name of the City | Number of Electric Stations | |
1 | Ranchi | 29 | |
2 | Lucknow | 1 | |
3 | Hyderabad | 50 | |
4 | Jaipur | 49 | |
5 | Chandigarh | 48 | |
6 | Delhi | 94 | |
7 | Bengaluru | 45 | |
8 | Goa | 17 | |
9 | Agra | 10 | |
Total | 350 |
For smooth operation and implementation of the scheme, knowledge partners / technical expertise and other logistic support shall be put in place. A suitable IEC program shall be undertaken for creating consumer awareness and promotion of the scheme, on a need basis, through education and training, publicity, organization of business meets/seminars/conferences/symposia etc. by Department of Heavy Industry, Industry Association, Voluntary Organizations, etc.Projects sanctioned under FAME India Scheme Phase I shall continue to be in operation as per terms and conditions issued at the time of sanction. Similarly, Electric Buses sanctioned to different state/city Transport Corporation under FAME India Phase I shall continue to be in operation as per terms and conditions at the time of sanction.Department of Heavy Industry will be responsible for overall implementation of scheme and removing any obstacle if arises during the implementation of scheme.
The following steps are taken by the Central Government to make Electric vehicles more affordable.
Incentives will be given to manufacturers involved in development of electric vehicles.
Incentives will be given to manufacturers involved in development of lithium ion batteries and electric motors.
The Centre has directed states to frame policies and provide incentives to manufacturers and buyers.
Switching to hybrid mode or to electric vehicles will have benefits as it is environment friendly, lesser dependence on fossil fuels, no emissions, and usage of cleaner and greener energy.
The battery manufacturing industry in India can become bigger than the total amount spent on import of crude oil. This would provide a huge boost to the Indian economy.
There needs to be a careful plan to hand-hold mini and micro auto component industries, which employs large numbers of people. Many of these companies won’t survive as Electric Vehicles replaces petrol/diesel vehicles. Hence it is imperative to help them during the transition phase to EV components manufacturing.
European Climate Foundation has estimated that through reducing oil demand by more efficient electric cars, employment will increase by 5,00,000 to 8,50,000 by 2030.
As per one of the studies, net private and social benefits are estimated between $300 and $400 per Electric vehicle.
The revenue loss for governments from the taxes on the oil sector is expected to be replaced by higher tax revenues in other economic sectors.
EVs will create opportunities in durable and lightweight thermoplastics, higher demand for electricity, storage, and many others.
Electric Mobility refers to the shift from fossil fuel to electric vehicles on a commercial and personal scale.It is a conscious movement towards clean energy and sustainability.India currently is in the initial steps of the transition towards electric vehicles.UN Environment’s Electric Mobility Programme supports developing and transitional countries shift from fossil fuel to electric vehicles.The present global situation requires countries to put extra attention towards the automobile sectors in order to reduce the fossil fuel dependency to meet up Net Zero Emission.There has to be incentives in real terms for people to adopt electric mobility on a large scale.
The initial cost of technology for the electric vehicles can be tackled with economies of scale in future.The government incentives would bridge the gap between the cost of electric and traditional vehicles.Also, electric mobility will offer a huge growth momentum to the overall economy.Electric mobility will open up vistas for new economic activities as there would be new ways for the adoption, services, charging of such vehicles.Electric mobility would require new infrastructure which will initiate a lot of economic activities.
The redesigned scheme aims at faster proliferation of Electric Vehicles by lowering the upfront costs. The government aims to turn the country into a global hub for EV manufacture and has approved a 18,100 crore production linked incentive (PLI) scheme to make advance chemistry cell battery to attract investments of 45,000 crore.The EV prices are expected to reach price parity with Internal Combustion Engine (ICE) vehicles before 2025. India plans to reduce EV prices by leveraging scale.
The government launched the FAME India scheme as an integral part of the National Electric Mobility Mission Plan with the agenda to promote green mobility. The second phase of FAME is introduced to remove most of the IC engine vehicles from the Indian roads. Hence, under FAME II, you will get 50% more subsidies for your electric vehicles. This move aims to bring down the overall cost of EVs thereby boosting sales and helping in quicker EV adoption. FAME II also supports the creation of Charging Infrastructure with heavy incentives.Reduced EV prices, road tax exemption and registration fee exemption are the subsidies for the buyers. The demand incentive benefit is on to the consumer upfront at the time of purchase of the xEV itself by way of paying the reduced price. An individual may buy multiple EVs and avail the demand incentive applicable for each of them.The manufacturers of the electric vehicles that are eligible for the FAME II subsidy are applying for it.
Electric Vehicles (EVs) are run by electric motors which are powered by energy stored in batteries. EVs have an electric motor instead of an Internal Combustion Engine (ICE). As an EV runs on electricity, the vehicle emits no exhaust from a tailpipe i.e. it has zero tail pipe emission and does not contain components, such as a fuel pump, fuel line, or fuel tank.
Other Benefits:
Charger Type | Charger Connectors* | Rated Output Voltage | No. of Connector Guns (CG) | Charging EV Type |
Fast | Combined Charging System (CCS) (min. 50 kW) | 200 – 750 or higher | 1 CG | 4-wheeler |
CHArge de MOve (CHAdeMO) (min. 50 kW) | 200 – 500 or higher | 1 CG | 4-wheeler | |
Type – 2 AC (min. 22 kW) | 380 – 415 | 1 CG | 4-wheeler, 3-wheeler, 2-wheeler | |
Slow / Moderate | Bharat DC-001 (15 kW) | 48 | 1 CG | 4-wheeler, 3-wheeler, 2-wheeler |
Bharat DC-001 (15 kW) | 72 or higher | 1 CG | 4-wheeler | |
Bharat AC – 001 (10 kW) | 230 | 3 CG of 3.3 kW each | 4-wheeler, 3-wheeler, 2-wheeler |
In addition, any other Fast / Moderate / Slow charger as approved by Department of Science & Technology (DST) / Bureau of Indian Standards (BIS) standards whenever notified.
Note: Type – 2 AC (min. 22 kW) is capable of charging electric 2-wheeler / 3-wheeler with the provision of an adaptor
Transport sector accounts for 23% of global GHG emissions. A study conducted in New Delhi on vehicular emissions shows that transport sector contributes significantly to particulate matter and no emission causing respiratory ailments. Through adoption of EV, the vehicular emission can be brought down significantly, hence enabling a healthier lifestyle.
(ii). EVs take too long to chargeTime of EV charging depends upon the type of charger adopted for charging. Currently available EVs across vehicle segments (2-wheeler, 3-wheeler, and 4-wheeler) can be charged from 0%-80% in around, 1 – 5 hours from Slow/Moderate chargers while using Fast chargers, EVs can be charged in less than 1 hour. Fast chargers are mainly used to charge electric 4-wheeler. Rate of charging is also dependent upon Cell Chemistry.
(iii). EVs are costlyAlthough EVs might have a higher upfront cost, the Total Cost of Ownership (TCO) of EVs is quite low, as charging, maintenance and operational costs is much lower than that of ICE vehicles. Moreover, the upfront subsidy provided by the central/state government further reduces the overall cost of EVs.
(iv). EVs have Low RangeWith introduction of high-density batteries in EVs, the storage capacity of batteries has increased thus improving the range of EVs. The average range of electric 2-wheelers currently available in the market is around 84 km per charge which is sufficient for day to day travel within a city and the average range of electric cars available in the market is from 150-200 km per charge. Further, upcoming models across vehicle segments have higher battery capacity and range.
EVs are safe as all EVs undergo rigorous safety testing. The challenge of fire and explosion risk in batteries is being addressed by most EV manufacturers with their efficient and intelligent Battery Management Systems (BMS) which perform task of cooling, heating, insulation & ventilation of Batteries, etc. The certification agencies, Automotive Research Association of India (ARAI), International Centre for Automotive Technology (ICAT) does rigorous testing for overcharge, short circuit and vibration. Thus, it is safe to drive an EV.
(vi). EVs have Low SpeedEVs are equipped with high-speed power trains therefore EVs offer better acceleration and speed. As far as speed is concerned, EVs available in the Indian market have top speeds depending upon the model selected / opted. EVs have a high starting torque as compared to ICE counterparts and accelerate faster.
(vii). EV batteries need to be replaced frequentlyEV batteries today have warranty of 3 to 8 years, across electric 2-wheeler, 3-wheeler and 4-wheeler categories. The actual battery warranty may vary depending upon the vehicle usage.
(viii). There are not enough EV charging stationsGovernment is pushing deployment of EV charging stations by providing capital subsidy through Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India, (FAME) India Scheme Phase II and state level initiatives. Further, government has de-licensed the activity of setting up EV charging stations to increase private sector investments and facilitate market adoption. Thus, in the coming years there will be sufficient availability of Public Charging Stations (PCS) for EV owners.
Battery design to strengthen EV’s is all about trade-offs across various metrics such as safety, cost, energy density and life span. Battery technology is progressing on several fronts. On the cost front, the trend is moving away from Cobalt, due to cost and safe mining concerns. Removing C (Cobalt) from NMC (Nickel-Manganese-Cobalt) chemistry has been a main focus of research. The numbers indicate the percentage of Nickel, Manganese and Cobalt in the cell, for e.g., NMC811 indicates 80% Nickel, 10% Manganese, and 10% Cobalt.On the safety front, solid-state electrolytes are replacing the flammable electrolytes, and significantly improving safety. In improving energy density (Wh/Kg), Silicon anodes and Lithium metal anodes are the key factors. There is also a move towards abundant materials with higher cycle life, resulting in resurgence of LFP chemistry. The energy density is also improving with NMC111 to NMC532 to NMC811.
Charging safety concerns, non-standardized connectors and lack of communication ports are key issues. India’s Advanced Cell Chemistry (ACC) PLI scheme is 18,100 crore Production Linked Incentives (PLI) scheme for building Tesla-style giga factories to manufacture batteries. It focuses on battery cycle life as a parameter for the incentive, and is envisioning cycle life of 4000 cycles and above. The scheme is technology-agnostic and determined by energy density and cycle life, with higher subsidy for cells with better quality and higher performance.
The plan is to set up 50 gigawatt hour (GWh) manufacturing capacity for advanced chemistry cell batteries by attracting investments totaling 45,000 crore. Each selected ACC battery manufacturer would have to commit to set up an ACC manufacturing facility of minimum 5GWh capacity and to ensure a minimum 60% domestic value addition at the project level within five years.
The incentive to be paid out on the basis of sales, energy efficiency, battery life cycle, and localization levels. The beneficiary firms have to achieve a domestic value addition of at least 25% and make the mandatory investment of 225 crore / GWh within 2 years and raise it to 60% domestic value addition within 5 years.
The Department of Heavy Industries (DHI) rolled out multiple schemes to create demand for EV’s and to augment supply. The validity of the FAME II program was extended to Mar 31, 2024, and the subsidy for EV-2W increased under FAME-II policy. On the supply side, in addition to the PLI scheme for ACC batteries as mentioned above, another PLI scheme for automobile and auto components was rolled out.
The Ministry of Power (MoP) announced the ‘Go Electric’ campaign for awareness of EV and charging infrastructure. In addition, Government owned CESL floated tenders to procure large quantities of EV-2W and EV-3W, and the government also announced the “Vehicle Scrappage Policy”.
Demand side drivers are FAME-II policies and incentives, various State level EV policies, mandated emission reduction, reduced life-cycle costs for EV and Government creating scale (like CESL/EESL program of 1 Lakh EV-3W). Supply Side drivers are high market penetration potential, low entry barrier, Manufacturing incentives through ACC PLI program, localization requirements and reducing technology costs.
There are also challenges that we need to overcome. Demand side challenges are consumer resistance, range anxiety, lack of charging infrastructure, limited models availability, high upfront costs, safety concerns of batteries and lack of power/charging infrastructure.
Supply side challenges are inverted duty structure for some components, limited supplier base, limited or no access to raw material, import dependency on China, developing capacity and capability at scale and focus on cost at the expense of safety.
Designing batteries to strengthen EV’s has to be 100% safety. All other parameters can take a backseat. We need to keep in mind that battery design is all about right trade-offs between energy density, cycle life, fast charge, safety, cost etc. It is not possible to maximize all vectors.
Homologation etc. looks at the design at beginning-of-life. We also need to factor in the aging of batteries. Design for safety at end-of-life, should be the overarching principle. We need India-specific designs for batteries, keeping in mind the operating temperature range; humidity etc. in India varies widely. There is no single cell chemistry that would meet all the requirements. End application will determine the right cell chemistry. Designing batteries to strengthen EV’s will be all about right trade-offs to maximize life.
FAME 2 Scheme has been started through the central government to control the pollution caused by the use of petrol and diesel. To keep the environment fresh and clean, the government of our country is providing electric vehicles to the people of the country through FAME 2 Scheme. The government has already launched the first frame of this scheme and now the second phase of this FAME India Scheme 2022 had started. Under the second phase of this scheme, the government will provide 670 electric buses in Maharashtra state, Goa, Gujarat, Chandigarh and 241 charging stations will be provided on the roads of Madhya Pradesh, Tamil Nadu, Kerala, Gujarat and Port Blair.The FAME India scheme has been launched in India to encourage the citizens of India to buy electric vehicles. Along with this, citizens will be given subsidy on buying new electric vehicles through this scheme; its main objective is to promote electric mobility. Due to this, the government has extended the FAME II scheme for 2 years. Due to which now this FAME India scheme will be applicable till 31st March 2024 (Earlier this scheme was started only from 2019 to 31 March 2022). So now under this scheme, the government has also increased the subsidy incentive from 10000 per kWh to 15000 per kWh. Accordingly, necessary charging infrastructure for electric vehicles has also been established under this scheme. The main objective of the FAME India scheme was to address the issue of environmental pollution and fuel shortage.
So far, a total of 78045 vehicles have been sold under the FAME India scheme. Only 5% of the budget allocated by the government i.e., 818 crore has been used and till now in terms of sales, a total of 58613 electric two-wheelers have been sold till March 2022. The government has allocated a budget of 10000 crore for the implementation of this scheme, in which the target was to sell 10 lakh units and the target was not completed, so the government has decided to extend this scheme till 2024. A total of 78045 electric vehicles have been sold till 26 June 2021. All these vehicles include 59984 electric two-wheelers, 16499 electric three-wheelers and 1562 electric four-wheelers.So far, out of the cities where this scheme has been implemented, Karnataka has sold the highest number of 17438 EVs and Tamil Nadu has sold 11902 EVs, Maharashtra has sold 8814 EVs while Uttar Pradesh has sold 5670 EVs. With all this, Delhi has sold 5632 electric vehicles.The subsidy will be given to the beneficiaries on the purchase of new electric vehicles through this scheme.
In the second phase of the FAME India scheme, the government has installed 350 new charging stations in India. All these stations are located in the cities of Chandigarh, Delhi, Jaipur, Lucknow, and Bangalore. Through the second phase of this scheme, 2877 different charging stations are being built in 68 cities across the country. 500 crore will be spent to build these charging stations. A subsidy of 492 crore was provided to 862 electric buses till June 30, 2021. In the second phase through FAME India Scheme has been launched to support 7000 E Buses, 5 Lakh E-3 Vehicles, 55009 E-4 Wheeler Passenger Cars and 10 Lakh E-2 Wheeler. Under this scheme, the main focus has been given on private vehicles of the residents of metros. Under this Fame 2 scheme by the central government to encourage the use of electric vehicles instead of diesel or petrol vehicles, electric vehicle charging stations will also be built along with the vehicle.At present, Phase-II of FAME India Scheme is being implemented for a period of 5 years w.e.f. 1st April, 2019 with a total budgetary support of 10,000 crores. This phase focusses on supporting electrification of public & shared transportation and aims to support, through subsidies, 7090 e-Buses, 5 lakh e-3 Wheelers, 55000 e-4 Wheeler Passenger Cars and 10 lakh e-2 Wheelers.
Benefits of FAME India SchemePollution from vehicle emissions has significantly increased in recent years. To reduce pollution caused by diesel and petrol operated vehicles and to promote electric or hybrid vehicles in India, the Central Government launched the Fame India Scheme in 2015.
FAME India Scheme
Government of India
Department of Heavy Industries, the Ministry of Heavy Industries and Public Enterprises.
National Electric Mobility Mission Plan
2022
Residents of India
Online/Offline
Providing electrical vehicles
Main thrust of FAME is to encourage faster adoption of electric and hybrid vehicles by way of offering upfront Incentive on purchase of Electric vehicles This scheme encourages electric vehicle manufacturers and related providers to manufacture a higher number of electric vehicles in the country.
India Will be Pollution-Free
Central Government Schemes
https://fame2.heavyindustry.gov.in/Index.aspx.
Establish an electric charging infrastructure and Incentivizing all vehicle segments
To reduce vehicular emissions and air pollution levels within the country
Hybrid & Electric technologies like Mild Hybrid, Strong Hybrid, Plug in Hybrid & Battery Electric Vehicles
Technology development, Demand Creation, Pilot Projects and Charging Infrastructure
In addition, FAME India Scheme targets to convert 30% of total transportation into electric vehicles by the year 2030.
In order to encourage the participation from the stakeholders in the segment the Government has offered various incentives. The scheme is proposed to be implemented by emphasizing on the following verticals:
The following initiatives have also been taken up by the Government of India for promotion of electric vehicles in the country –
The Government on 12th May, 2021 approved a Production Linked Incentive (PLI) scheme for manufacturing of Advanced Chemistry Cell (ACC) in the country in order to bring down prices of battery in the country. Drop in battery price will result in cost reduction of electric vehicles.
GST on electric vehicles has been reduced from 12% to 5%; GST on chargers/ charging stations for electric vehicles has been reduced from 18% to 5%.
Ministry of Road Transport & Highways (MoRTH) announced that battery-operated vehicles will be given green license plates and be exempted from permit requirements.
MoRTH issued a notification advising states to waive road tax on EVs, which in turn will help reduce the initial cost of EVs.
Purchase incentives for electric two-wheelers (E2W) were increased by 50% to 15,000 per kWh of battery capacity. The limit on this incentive was also relaxed from 20% of the ex-showroom price to 40% of the ex-showroom price.
Purchasing an electric vehicle is costlier than buying an internal combustion engine vehicle, but that is only because of the higher upfront cost. The key mechanisms for getting incentives are:
Electric vehicles (EV) are significantly more expensive than comparable internal combustion engine (ICE) vehicles. EVs have higher upfront costs than ICE vehicles and reducing this cost is crucial in making them more attractive to buyers. Effective cost over the lifetime for electric vehicles is still less. The government offers different types of financial incentives to make electric vehicles more affordable for you. The key mechanisms have been listed below.
Total Approximate Incentives | Approximate Size of Battery |
Two wheelers: 15000/- per kWh upto 40% of the cost of Vehicles | Two wheelers: 2 kWh |
Three wheelers: 10000/- per kWh | Three wheelers: 5 kWh |
Four wheelers: 10000/- per kWh Maximum up to 1.5 lakh | Four wheelers: 15 kWh |
E Buses: 20000/- per kWh | E Buses: 250 kWh |
E Trucks: 20000/- per kWh |
Nearly all the state governments have completely waivered road tax for electric two wheelers except Rajasthan where the state government is not exempting road taxes at all. Next in this list is Kerala where the state government has exempted 50% road tax. Madhya Pradesh has waived 99% of the road tax. Now coming to the subsidies offered by individual state governments, Odisha is the only state giving an outright subsidy of 5000 irrespective of the vehicle's battery capacity which is the lowest subsidy offered by any state. Rajasthan offers a maximum subsidy of 10,000 at a rate of 2500 per kWh of the vehicle's battery capacity. The states of Meghalaya, Gujarat, Assam, Bihar and West Bengal are ahead of Rajasthan in the subsidy race with the individual state governments offering a maximum subsidy of 20,000 at a rate of 10,000 per kWh battery capacity. Delhi is offering maximum subsidy worth 30,000 at a rate of 5000 per kWh of battery capacity. Maharashtra offers a maximum subsidy amount of 10,000 with an additional early bird incentive of 15,000 and 7000 for scrappage. It must be noted that the early bird incentive can be availed only if you book your electric bike or scooter before 31st March 2022. In addition to these individual state subsidies, Central government is offering a subsidy of 15000 per kWh capped at 40% of vehicle cost.
State government subsidies and tax exemptions for Electric Four wheelers:The road tax exemptions for four wheelers are same as that of the two wheelers. While road tax exemptions are same, individual state government subsidies are different for cars. In case of cars, Meghalaya is the state offering least subsidy with a maximum subsidy amount of 60,000 at a rate of 4000 per kWh battery capacity. Odisha is offering an outright subsidy of 1,00,000 irrespective of the battery capacity. Next in the list are Gujarat, Assam, Bihar and West Bengal where a maximum subsidy of 1,50,000 is offered at a rate of 10,000 per kWh. Maharashtra state government is offering maximum subsidy of 1,50,000 at a rate of 5000 per kWh. In addition to this, the government is also giving 1,00,000 as early bird incentive. Just like for two wheelers, this incentive is applicable only if you book your car before 31st March 2022.
An additional scrappage incentive of 25,000 takes your subsidy potential to 2,75,000. It must be noted that even though Delhi was offering subsidy up to 1,50,000, the subsidies are now withdrawn since the target limit of sale of 1000 electric cars was fulfilled. In addition to these individual state subsidies, Central government is offering a subsidy of 10000 per kWh capped at 1,50,000.Maximum subsidy is capped at 40% of the electric vehicle’s cost. By offering subsidies, incentives, and advantages to customers and the EV sector as a whole, the Indian government has sown the seed for electric vehicles.The Ministry of Road Transport and Highways stated in August 2021 exempting electric cars from paying costs for registration certificate issuance or renewal. Earlier in 2019, the scheme laid down the eligibility criteria including a minimum range of 80 km and a minimum top speed of 40 kmph for an electric two-wheeler to qualify for this subsidy.The newly amended scheme extends the subsidy amount for the battery-powered two-wheelers that This move has been well received by EV makers in India as it aims to bring down the overall cost of electric bikes and scooters, thereby boosting sales and helping in quicker EV adoption. In fact, soon after the announcement, a number of two-wheeler makers immediately passed on the benefits to customers.The new FAME II subsidy is likely to introduce price neutrality between conventional ICE-powered vehicles and electric-powered vehicles.Initial cost of ownership will incrementally reduce by a minimum 10-12%. It will thus result in a lower payback period. The payback period was estimated to be four years (in terms of the total cost of ownership), which now stands reduced to three years.
India’s efforts for the adoption of electric vehicles are more serious than ever. In addition to the FAME II scheme by the central government several states and Union Territories are putting their own schemes and subsidies to encourage it further. Hence, here is a complete rundown of all the vehicle.
What’s the problem, one might ask?
While government in India is working aggressively to put out a credible infrastructure for electric vehicles, technology is also fast evolving and the EVs of today are akin an IC-engine vehicle with same creature comfort, same driving dynamics.So it all boils down to pricing of vehicles. You see, no matter what yardstick you take to compare the two machines, EVs are not at all pocket friendly as compared to conventional petrol/ diesel vehicles, at least when it comes to initial cost of ownership. One might argue the overall lifetime cost of EVs is less than a petrol car, for example, but we don’t compare prices when we buy any new thinking what will happen 10 years down the line. And so, the onus is both on manufacturers and governments to take this pricing issue seriously for pushing the EV penetration in India. This is where our Federal structure works beautifully. While central government is putting efforts by offering subsidies under FAME II scheme, state governments are further helping buyers by offering additional benefits.These incentives vary depending on which Indian state you live in.
State | Battery capacity cost | Max Subsidy | Other benefits |
---|---|---|---|
Delhi | 5,000/ kWh | 30,000 | No road tax, registration fees up to 10,000,scrapping incentive |
Maharashtra | 5,000/ kWh | 10,000 for the 1st 10 lakh buyers Maximum Subsidy of 25,000 including early bird incentive | No road tax, registration fees up to 15,000 early-bird incentive till December 31st up to 7,000 scrapping incentive 12,000 incentive with buyback scheme min 5 years warranty on the battery |
Meghalaya | 10,000/ kWh | 20,000 for the first 3,500 electric scooter | No road tax, registration fees |
Gujarat | 10,000/ kWh | 20,000 for the first 1.1 lakh electric two-wheelers | 50% of the road tax with the purchase price of the electric vehicle, registration fees |
Chandigarh | – | 20,000 for the first 3,000 vehicles | No road tax, registration fees |
Assam | 10,000/ kWh | 20,000 | No road tax, registration fee |
Bihar | 10,000/ kWh | 20,000 | No road tax, registration fee up to 14,000 subsidy on Li-ion battery |
Goa | 10,000/ kWh | 30,000 per annum for 5 years | No road tax, registration fee up to 10,000 scrapping incentive |
Rajasthan | 2,500/ kWh | 10,000 | No road tax, registration fee SGST reimbursement |
Odisha | – | 5,000 | No road tax, registration fee |
West Bengal | 10,000/ kWh | 20,000 | No road tax, registration fee |
Uttar Pradesh | N/A | N/A | No road tax, the registration fee for the first 1 lakh electric scooters/ bikes |
Madhya Pradesh | N/A | N/A | 99% of road tax exemption, Registration fee waiver |
Kerela | N/A | N/A | Registration and road tax waiver |
Punjab | N/A | N/A | No road tax, registration fees |
Karnataka | N/A | N/A | Registration and road tax waiver |
Andhra Pradesh | N/A | N/A | No road tax, registration fee till 2024 |
Tamil Nadu | N/A | N/A | Registration fee waiver until 2024 No road tax |
Uttarakhand | N/A | N/A | No road tax, the registration fee for the first 1 lakh electric scooters/ bikes |
Telangana | N/A | N/A | No road tax, registration fees |
In Delhi, electric vehicle subsidies are the highest. Maharashtra and Meghalaya follow. The majority of regions have also exempted road tax, with the exception of Gujarat, which charges 50 percent of road tax with the purchase price. Currently, the number of states that do not offer any subsidies is much higher and includes Karnataka, Andhra Pradesh, Madhya Pradesh, and Tamil Nadu among others.
State | Battery capacity cost | Max Subsidy | Other benefits |
---|---|---|---|
Maharashtra | 5,000/ kWh | 1,50,000 for the first 10,000 buyers Maximum Subsidy of 2,50,000 including early bird incentive | No road tax, registration fees up to 1,00,000 early bird incentive till December 31st up to 25,000 scrapping incentive |
Delhi | 10,000/ kWh | 1,50,000 for the first 1,000 buyers | No road tax, registration fee |
Gujarat | 10,000/ kWh | 1,50,000 for the first 10,000 buyers | 50% of the road tax with the purchase price of the electric vehicle, registration fee |
Assam | 10,000/ kWh for electric cars priced above 15 lakh | 1,50,000 for the first 25,000 buyers | No road tax, registration fees |
Bihar | 10,000/ kWh | 1,50,000 for the first 5,000 buyers | No road tax, registration fees |
West Bengal | 10,000/ kWh | 1,50,000 | No road tax, registration fees |
Meghalaya | 10,000/ kWh for electric four-wheelers priced above 15 lakh 4,000/ kWh for electric four-wheelers priced below 15 lakh | 60,000 for the first 2,500 buyers | No road tax, registration fees |
Goa | 10,000/ kWh | 1,50,000 for the first 500 electric cars | No road tax, registration fees |
Odisha | N/A | 1,00,000 | No road tax, registration fees |
Chandigarh | N/A | N/A | No road tax, registration fees till 2024 |
Punjab | N/A | N/A | No road tax, registration fees |
Uttarakhand | N/A | N/A | No road tax, registration fees for the first 1 lakh electric vehicles |
Uttar Pradesh | N/A | N/A | 75% road tax exempted, registration fees for the first 1 lakh electric vehicles exempted |
Madhya Pradesh | N/A | N/A | 99% of the road tax exempted, No registration fees |
Karnataka | N/A | N/A | No road tax, registration fees |
Rajasthan | N/A | N/A | N/A |
Kerela | N/A | N/A | 50% road tax exempted, no registration fees |
Telangana | N/A | N/A | No road tax, registration fees |
Tamil Nadu | N/A | N/A | No road tax, registration fees |
Andhra Pradesh | N/A | N/A | No road tax, registration fees |
State | Other benefits |
---|---|
Maharashtra | For three-wheelers and rickshaws - Upto 30,000 - Registration and road tax exemption on all electric vehicles. |
Delhi | For three-wheelers, rickshaws and freight carriers – Benefits upto 30,000 - In addition, the state government has waived off the registration fees and road tax on all types of electric vehicles |
Gujarat | For three-wheelers and rickshaws - 50,000 - Additionally, registration and road tax exemption on all vehicles. |
West Bengal | Maximum Subsidy of 50,000. Maximum ex-factory price to avail incentive is 5,00,000.No road tax, registration fees |
Meghalaya | Meghalaya is the only state to expedite the RTO paperwork of EVs. No road tax, registration fees |
Chandigarh | No road tax, registration fees till 2024 |
Karnataka | Karnataka is offering no direct subsidy to EV owners but is offering full exemption from road tax and registration fees for electric vehicles. |
Rajasthan | No direct benefit will be given to the buyer on purchase, but a benefit against State Goods and Service Tax will be provided (SGST). As per the state government’s Transport Department, government will reimburse SGST (State Goods and Service Tax) amount on purchase on an EV. |
Telangana | No road tax, registration fees |
Andhra Pradesh | No road tax, registration fees |
Sr. No. | Vehicle Segment | Maximum Number of vehicles to be supported | Approximate Size of battery in KWH | Total Approximate Incentive @ 10000/KWh for all vehicles and 20000/KWh for Buses and Trucks | Maximum Ex-factory price to avail incentive. | Total Fund support from DHI. |
1 | Registered e-2 Wheelers | 10,00,000 | 2 KWH | 20000/- | 1.5 Lakhs | 2000 Cr |
2 | Registered e-3 Wheelers (including e-Rickshaws) | 5,00,000 | 5 KWH | 50000/- | 5 Lakhs | 2500 Cr |
3 | e- 4 Wheelers | 35,000 | 15 KWH | 150000/- | 15 Lakhs | 525 Cr |
4 | 4W Strong Hybrid Vehicle | 20,000 | 1.3 KWH | 13000/- | 15 Lakhs | 26 Cr |
5 | e-Bus | 7,090 | 250 KWH | 50 Lakhs/- | 2 Crores | 3545 Cr |
Total Demand Incentive | 8596 Cr |
The proposed amount of incentives per KWH are, however, subject to review as per the reduction in battery costs & thereby reduction in vehicle cost and would be notified accordingly from time to time. It is to be noted that the number of vehicles and fund support among the sub components as above is fungible with the approval of PISC.Composition of Project Implementation and Sanctioning Committee (PISC)
(a). Secretary, Heavy Industry
(b). CEO, NITI Aayog
(c). Financial Advisor, Heavy Industry
(d). Secretary, D/o DPIIT
(e). Secretary, M/o RTH
(f). Secretary, D/o EA
(g). Secretary, M/o Power
(h). Secretary, M/o NRE
(i). Director ARAI
(j). Joint Secretary, Heavy Industry Member Secretary
Committee may co-opt any other member as and when required.
Chairman
Member
Member
Member
Member
Member
Member
Member
Member
Member Secretary
Manufacturers and infrastructure providers of electric vehicles receive this incentive in the form of subsidies. FAME India scheme is a part of the National Electric Mobility Mission Plan and was launched by the Ministry of Heavy Industries and Public Enterprises.
The benefits of Fame India scheme are available for the following individuals:
Vehicles from different segments will receive subsidy benefits accordingly.Individuals are the only ones who can take advantage of this deduction. No other taxpayer is eligible for this deduction. As a result, you cannot claim any advantage under this provision if you are a HUF, AOP, Partnership firm, company, or any other type of taxpayer.Through this scheme, the concerned department aims to provide incentives to various categories of vehicles. These are,
Only advanced battery and registered vehicles will be incentivized under the scheme. With greater emphasis on providing affordable & environment friendly public transportation options for the masses, scheme will be applicable mainly to vehicles used for public transport or those registered for commercial purposes in e-3W, e-4W and e-bus segments. However, privately owned registered e-2Ws are also covered under the scheme as a mass segment.
Vehicles, fitted with only advanced chemistry battery, meeting with minimum Technical Criteria and registered as "Motor Vehicle" as per Central Motor Vehicles Rules (CMVR), 1989 shall be eligible for incentive under the scheme. With greater emphasis on providing affordable & environment friendly public transportation options for the masses, scheme will be applicable mainly to vehicles used for public transport or those registered for commercial purposes in e-3W, e-4W and e-bus segments. However, privately owned registered e-2Ws are also covered under the scheme as a mass segment.
It means any e-two-wheeler with an ex-factory price of up to 1.50 lakh can be eligible for a maximum FAME-II subsidy of 60,000, if it has a 4 kWh battery.
The FAME subsidy will be factored in the electric vehicle price, in case you are eligible for it, and will not have to be claimed separately. In case, at the document verification stage, you are found to be ineligible for the subsidy, you would have to pay the full price.
For vehicles to avail subsidy under the scheme, the criteria limited the maximum cap on all categories (except buses) to 20 percent of the cost of the vehicle.
The government has proposed that for electric vehicles sold in India will need to adhere to the minimum specification in terms of range, speed, energy consumption, acceleration, warranty and the maximum capacity of battery criteria (which replaces 20% cost of the vehicle cap), to ensure that the industry focuses more on efficiency, instead of fixing a higher price to pass on the benefits to the consumer. In addition, all EVs will need to come equipped with regenerative braking system and a stop-start system.
Sr. No. | Vehicle Segment | Vehicle Category | Vehicle Model Eligibility Criteria (to be measured as per the standards/procedures specified in Annexure) | |||||
Minimum Range as per Central Motor Vehicles Rules (CMVR), 1989 (km) | Minimum Range as per Gross Vehicle Weight (GVW) and HVAC in operation (set temperature 24 ± 4 deg C)(km) | Maximum Electric Energy Consumption as per FAME II Eligibility Assessment Procedure (kWh/100 km) | Minimum Max Speed as per Gross Vehicle weight (GVW) (km / hr) | Minimum Acceleration (m/s2 ) | Minimum Gradeability (Degree) | |||
1 | e-Bus with length 9m and below | M3 | 140 | 120 | Less than 100 | 70 | 0.8 | 9.7 (17%) |
2 | e-Bus with length above 9m and up to 12m | M3 | 140 | 120 | Less than 140 | 70 | 0.8 | 9.7 (17%) |
Sr. No. | Vehicle Segment | Vehicle Category | Vehicle Eligibility Criteria | ||||||
Minimum Range as per IDC Test procedure (km) | Comprehensive warranty including that of battery | Maximum Electric Energy Consumption as per FAME II Eligibility Assessment Procedure (kWh/100 km) | Minimum Max Speed as per Gross Vehicle weight (GVW) (km / hr) | Minimum Acceleration (m/s2 ) | Maximum Capacity of Battery (in place of 20% of cost of vehicle) | Minimum Gradeability (Degree) | |||
1 | Electric Two-wheelers | L1/L2 | 60 | 3 Years | Less than 8 | 50 | 0.65 | 3KWH | 7 |
2 | E-rickshaws / E-Cart | E-rickshaws / E-Cart | 60 | 3 Years | Less than 10 | N.A. | N.A. | 5KWH | N.A. |
3 | Electric Three-wheelers | L5 | 80 | 3 Years | Less than 15 | 50 | 0.65 | 10KWH | 7 |
4 | Electric Four-wheelers | M1(Length less than 4m) | 140 | 3 Years | Less than 15 | 70 | 1.04 | 30KWH | 7 |
5 | Electric Four-wheelers | M1(Length more than 4m) | 140 | 3 Years | Less than 20 | 70 | 1.04 | 30KWH | 7 |
6 | Electric Four-wheelers (LCV/State Carriage/ max i cabs) | N1 | 100 | 3 Years | Less than 30 | 50 | 1.04 | 20KWH | 7 |
Any vehicle that is registered as state carriage, the maximum energy consumption will be 1.5 times than mentioned above.
The PLI Scheme for Automobile & Auto Components will provide the boost bar to manufacturing of Battery Electric Vehicles and Hydrogen Fuel Cell Vehicles of all segments – 2 wheelers, 3 wheelers, passenger vehicles, commercial vehicles, Tractors, Automobile meant for Military use and any other Advanced Automotive Technology vehicle as prescribed by Ministry of Heavy Industry depending upon technical developments.
The scheme consists of two components incentivizing incremental sales of:
Eligibility Criteria | Auto OEM (Original Equipment Manufacturers) | Auto-Component |
Global group* Revenue (from automotive and/ or auto- | Minimum 10,000 crore. | Minimum 500 crore. |
Investment | Global Investment of Company or its Group* Company (ies) in fixed assets (gross block) of 3,000 crore. | Global Investment of Company or its Group* Company (ies) in fixed assets (gross block) of 150 crore. |
Eligibility Criteria | New Non-Automotive investor company or its Group company(ies) (who are currently not in automobile or auto component manufacturing business) |
Global net worth | 1000 crore based on audited financial statements for year ending March 31, 2021. |
Committed investment in India over five year period | As per Minimum New Domestic Investment Conditions mentioned in para – 3.2(c) below. |
Group Company means two or more enterprises which, directly or indirectly, are in a position to: Exercise twenty-six percent or more of voting rights in the other enterprise;
Or
Appoint more than fifty percent of members of Board of Directors in the other enterprise. (As defined in the FDI Policy Circular of 2020)
Investment: “Investment” as mentioned in Para -3.2(c) of the scheme shall mean:
Cumulative New Domestic Investment Condition of Performance ( Crore)
Cumulative new domestic investment to be achieved | Champion OEM (Except 2W & 3W) | Champion OEM 2W & 3W | Component Champion | New Non -Automotive investor (OEM) Company or its Group companies | New Non-Automotive investor (Component) company or its Group companies |
Global group* Revenue (from automotive and/ or auto- | 300 | 150 | 40 | 300 | 80 |
Upto or before March 31, 2024 | 800 | 400 | 100 | 800 | 200 |
Upto or before March 31, 2025 | 1400 | 700 | 175 | 1400 | 350 |
Upto or before March 31, 2026 | 1750 | 875 | 220 | 1750 | 440 |
Upto or before March 31, 2027 | 2000 | 1000 | 250 | 2000 | 500 |
Note:
Particulars of the Scheme | Champion OEM (Original Equipment Manufacturers) Incentive scheme or New Non-Automotive Investor company | Component Champion incentive scheme |
---|---|---|
Applicability | Battery Electric Vehicles and Hydrogen Fuel Cell Vehicles of all segments – 2 wheelers, 3 wheelers, passenger vehicles, commercial vehicles, Tractors, Automobile meant for Military use and any other Advanced Automotive Technology vehicle as prescribed by Ministry of Heavy Industry (MHI) depending upon technical developments linked with the sales value and the products so approved by Ministry of Heavy Industry under the scheme. | Pre- approved Advanced Automotive Technology components of all vehicles, CKD/SKD kits, Vehicle aggregates of 2-Wheelers, 3-Wheelers, passenger vehicles, commercial vehicles and tractors including automobile meant for military use and any other Advanced Automotive Technology components prescribed by MHI depending upon technical developments linked with the sales value and the products so approved by Ministry of Heavy Industry under the scheme. |
Target Segment | Automotive OEM company or its Group company (ies) and new Non- Automotive Investor company or its Group companies. | Auto-component manufacturing company or its Group companies, Automotive OEM company or its Group companies and new Non-Automotive Investor company or its Group companies. |
Eligibility |
|
|
Scheme Incentive Mechanism |
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|
Incentive Slabs | Incentive Slab is based on Determined Sales Value and percentage and incentive slabs as follows:
Additional 2% incentive is given if determined sales value is more than 10,000 Cr over 5 years. |
Incentive Slab is based on Determined Sales Value and percentage and incentive slabs as follows:
Additional 2% incentive is given if determined sales value is more than 1250 Cr over 5 years and additional 5% incentive is given to Battery Electric vehicles & Hydrogen fuel cell vehicles components |
Total Incentive per entire Group company (ies) is capped at 6,485 crore (25% of total incentives outlay under this Scheme). The cap on incentive payable to the approved company or Group of company (ies) as stated above would be incorporated as part of the agreement.
Battery swapping is a method in which a depleted battery is replaced with a fully charged one. Battery swapping is a potential solution to range anxiety, reduced vehicle cost and efficient charging arrangement. This also addresses the recurring CapEx challenge of buying new battery packs and the economic viability of operating Electric Vehicles. Battery swapping provides a quick recharge alternative to EV drivers in the last mile delivery (LMD) space. With swapping, the battery packs can become smaller and the average subsidy per vehicle will become lower implying more vehicle support within the FAME-II budget. The battery swapping model uses battery leasing service which separates the ownership of the battery and the E2W/E3W and reduces the expenses incurred by EV owners.
Need for swappingThe plug-in chargers for Electric Vehicles (EV’s) are slow and are capable of charging a single vehicle at a time. The vehicles can be mostly charged at home or work and charging type is typically 2 hours or more.
Separation of vehicle and battery, reduces the upfront cost of EV purchase, enhances the competitiveness. The standardized battery can improve the safety and prolong the life of the battery by correct charging. Users also generally don’t need to worry about the residual value of the battery or the battery degradation. They can continue to enjoy the dividends brought about by improvements in battery technology. With centralized management of batteries and closed-loop management, reduces the overall cost of the batteries. The batteries can also be re-purposed after their end-of-life for solar and energy storage applications.
Gogoro of Taiwan is the world leader in battery swapping stations. Gogoro has over 2000 GoStations and has delivered over 180 million battery swaps to more than 375,000 subscribers. Most recently Gogoro has partnered with Hero MotoCorp for building the next generation of smart vehicles powered by Gogoro swapping technology.Taiwan E-scooter standard (TES) was formulated to ensure standardization in battery and battery swap stations. Gogoro has engineered safer, swappable batteries and connected it all on a network of battery swapping stations that intelligently distribute energy so that the battery power is always available, when and where needed. Gogoro has developed vehicles so that the battery packs are unstealable and comes with over-the-air software updates. The network of swapping stations is all scalable and flexible with a small foot-print.
Gogoro’s goal is to shift perceptions of what electric fuel could be. Each Gogoro e-scooter connects two Li-Ion batteries, weighs about 9kg each and offers riding distances of up to 170km. They are encased in a durable, waterproof, aluminum case and every battery in the network is monitored with over 25 integrated sensors for thermal, overcharge protection, shock detection and equipped with wireless NFC communication.The Gogoro Charging Stations (GoStations) are modular, consisting of a main unit with additional expansion units that can be added as needed. The larger GoStations can retain up to 200kWh of energy, supporting upto 1000 riders. They are accessible 24x7 in places like gas stations and convenience stores. The touchscreen provides information about users’ energy use and displays notifications about their EV usage. The typical expectation is that the users can swap their batteries and go in under 30 seconds.The swapping stations can also power themselves using batteries in the event of power interruption or can be used as a power source to help power smaller microgrids in the event of power outages disrupting critical systems. The consumers who like Gogoro’s battery system will have a choice between buying Gogoro’s own scooters or scooters from third parties. Gogoro’s ridesharing platform can be used as a white-label solution by companies that want to launch their own EV ride-sharing program.Honda, KTM, Yamaha and Piaggio Group have formed a Swappable Battery Motorcycle Consortium (SBMC). The underlying aim is to address the future of electro mobility, such as range, charging time, infrastructure and cost of ownership. They are developing common technical specifications for swappable battery systems.
Lock SmartVehicle Battery Charger Cloud Protocol (LS-VBCC) formulated by Indian Institute of Technology Madras (IITM) published the open protocol for battery swapping. This protocol document addresses the Charging protocol (between charger and battery), Driving protocol (between battery and vehicle) and provides protocol for communication between Electric Vehicle (EV) and Electric Vehicle Supply Equipment (EVSE) and for communication between EVSE and a Central Management System (CMS). The Central Management System (CMS) design incorporates open-APIs enabling development of mobile applications, so as to provide a holistic platform for enabling EV proliferation.The physical layer is based on the CAN interface (29-bit CAN identifier at 500kbits/sec). The CAN identifier is as per the SAE J1939-21:2006 standard. The protocol includes an auto-addressing stage to address the various devices in the system and also includes an authentication stage so that only after proper device authentication, other transactions are honored.
Lack of standards for battery swapping, lack of openness and divergent technical and economic interests are the key challenges. Also safety is a key concern that needs to be addressed in the battery swapping stations. A common swapping policy for promoting battery swapping technology is key factor. Other impediments are the large investment requirement for battery-swapping stations, operation and maintenance of the swapping stations, difficulty in achieving unified standards, unclear demarcation of division of responsibilities and limited space for station construction. Each of these challenges is intensely worked on by various players.
In order for the battery swapping to take-off the following are the key points to be considered.
India’s FAME-II (Faster Adoption and Manufacture of Electric Vehicles) scheme is primarily developed with fixed batteries in mind. Standardization of swappable battery form factor, connector and communication protocol is still under various stages of discussion. The ISO/IEC standards related to battery and swapping stations are also in draft stages. BIS has constituted a committee for drafting the charging station level standard.Lack of standardization is an important barrier to the rollout of a single harmonized solution. The electric vehicle standards and the battery standards for different companies are different. More importantly, automobile manufacturers generally do not want to adopt one unifying solution as they fight for control. This power struggle and lack of trust makes this standardization difficult.
There are several policy interventions that are required to make the battery swapping for EV successful. A few of them are listed below.
The battery swapping as a service or battery energy operator is typically compared to the gas cylinder service in India or to the service provided by mobile operators. The mobile handset (EV) is different from the mobile service provider (Battery as a Service) and the same model might work in the case of battery swapping for EV.It is clear that standardization is key and also recognizing that this might be the way forward for faster adoption especially for some segments like last mile delivery operators. Having said that, the market is still nascent and we should not restrict the innovation that can happen across pack dimensions, connectors and communication protocols so that there is ample scope for trying out new ideas. The battery swapping in India is truly at an inflection point.
To avail of the benefits of Fame India Scheme’s latest phase, i.e. Phase II, applicants have to follow the steps mentioned below.
Step 1- Visit the official website of the Department of Heavy Industries, Ministry of Heavy Industries, and Public enterprises.
Step 2- Click on Fame India Phase II option.
Step 3- After that, an application form will appear on your screen.
Step 4- Fill up that form with relevant information and follow the instructions to complete the procedure.
Note: Applicants must follow the instructions given by the concerned department. Further, they must remember, there is no other way of applying for the Fame India Scheme.
Now that you know every detail of Fame India Scheme, you can opt for electric vehicles to ensure a greener and cleaner future for yourself and upcoming generations.
If you have any new innovative suggestion or want to give your description of the experience of the service then you may write them through following process.
The complete PDF file of the Dealer network file will also be there and you can download the file for future reference too.
If you are still facing any problem then you can contact on helpline number or write an email defining your problem. The helpline number and email id are as follows:-
The Applying process for Fame India Phase II is through the local authority relevant to the scheme. There is no latest procedure to apply for the Fame India Scheme but interested candidates can visit the official website to keep track of the scheme all in all. The three years old program is based on the subsidies given to the buyers of two-wheelers, three-wheelers, or four-wheelers Electric vehicles.
Subsequent to the FAME II the Government has taken a Milestone for ramping up the Electric Mobility in the India Economy and to protect the sustainability of Indian Automakers and to Make India “Atma-Nirbhar Bharat”. Tenure of the scheme will be from 2022-23 to 2026-27 and base year will be considered for the calculation of incremental investment is 2019-20.
The window for receiving applications through the Notice Inviting Applications will be for a period of 60 days and application to be furnished on online portal along with financial & supporting documents.
Note: Documents required for verifying eligibility for both the components of the scheme will include, but not be limited, to the following:
The Application Form along with details of all necessary supporting documents, to be submitted at the time of application, will be notified separately by Ministry of Heavy Industries (MHI) in due course of time. A non-refundable application fee would be payable for each application.
Eligible Sales Value and Determined Sales Value under the Scheme:The scheme is designed to incentivize Advanced Automotive Technology products only viz eligible Advanced Automotive product on standalot component level or in integration with the vehicle having appropriate value apportionment on the vehicle side. Therefore, an approved legal entity as Automotive OEM company or New Non-Automotive Investor company can avail incentives under both components of the scheme subject to the condition that any eligible product shall be incentivized only once under the scheme. Any double claim of incentive for the same product under component level and vehicle level can lead to disqualification of the legal entity/entities involved on this ground alone in addition to any other legal action as applicable under the law.
Value Addition:The term “Value addition” will be construed as the percentage of manufacturing activity being undertaken in that referred part of the supply chain.
% domestic value addition= [(Ex-factory price of the product (net of GST) – (minus) Import content i.e. sum of FOB value of all imported components or materials in the final product including import duties) / Ex-factory price of the product (net of GST)] x 100.It will be certified by testing agency of MHI.
Maximum Incentive under the Scheme:
Applicable Incentive (Financial Year) | Disbursement of Incentive (Financial Year) | Total Incentive ( Crore) Indicative inclusive of administrative expenses |
2022-23 | 2023-24 | 604 |
2023-24 | 2024-25 | 3,150 |
2024-25 | 2025-26 | 5,925 |
2025-26 | 2026-27 | 7,199 |
2026-27 | 2027-28 | 9,060 |
Total | 25,938 |
Recently, the Government of India Union Cabinet has approved a 26,058 crore Production Linked Incentive (PLI)scheme for auto, auto-components and Drone industries to enhance India’s manufacturing capabilities.
It excludes conventional petrol, diesel and CNG segments (Internal Combustion Engine) since it has sufficient capacity in India. It is incentivizing only advanced automotive technologies or auto components whose supply chains are weak, dormant, or non-existing. It is aimed at boosting new technology and the economy of clean fuels.This Scheme will prove the booster for environmental friendly Electric Vehicles and Hydrogen Fuel Cell Vehicles of all segments and components thereof. However, basic investment limit has been kept very high, therefore, most of the MSME will be deprived of such scheme.
The sche MHI and the expenses will be met within the allocation of the scheme. me shall have provision for cost audit by External Auditor (Cost or Chartered Accountant) appointed by As a matter of fact, under Section 148 of the Companies Act 2013 and Companies (Cost Records and Audit) Rules, 2014, Automobile & Auto Components Manufacturer have to maintain Cost Records and also get the same audited by Practicing Cost Accountant as defined under Section 2 of Cost & Works Accountants Act 1959 and therefore, audit has to be carried out by Cost Accountant as appointed Ministry of Heavy Industry.
As the FAME incentives get exhausted -- likely by fiscal 2024 -- the PLI scheme could drive EV adoption. The latest PLI scheme for EVs and hydrogen fuel cell vehicles, which is aimed at enhancing India's manufacturing capabilities for advanced products for five fiscals beginning 2023, can restrict any steep increase in TCA and keep it around ICE variant levels. So, as FAME II rides into the sunset, PLI could step in to support demand and subsequently push manufacturers to make investments in capacity building. To cite an example, an electric scooter with an ex-showroom price of up to 1.4 lakh (without FAME incentive) and on-road price of 1.04 lakh (net of FAME incentive, and inclusive of registration, insurance and other miscellaneous costs) could realize incentives up to 17,000 per vehicle over the period of the PLI scheme. This is approximately 10-12 per cent of the ex-showroom cost of the electric scooter. Additionally, the TCA of electric scooters could be similar to ICE variants if 75 per cent of the expected PLI benefit is passed on to customers. In a scenario where 100% of the PLI benefit is passed on to buyers, the TCA of electric scooters would be 1,000 lower than that of ICE variants. Overall, the PLI scheme is expected to push up adoption of electric scooters, given the availability of more models and significantly lower pricing. As such, vehicle makers will have enough incentive to invest in the manufacturing of electric scooters, which will boost supplies.The motorcycle segment, too, would be eligible for the PLI benefit where, after the FAME II incentives get over, TCA is expected to increase by 15,000 from fiscal 2023 to fiscal 2025. However, limited models and higher price will remain a deterrent versus electric scooters.
Demand incentive under FAME India scheme is available only to vehicles that are regulated by the Central Motor Vehicle Rules (CMVR) and meet other qualifying criteria laid out in the FAME scheme. As such these vehicles meet all the safety regulations as applicable in the country.
National Automotive Board is the apex body dealing with automotive sector. The Ministry of Heavy Industries, Government of India, deals with areas related to vehicles and automotive parts. Entire Automotive industry falls under the concern of Heavy Industries Ministry.
The PLI Scheme for the auto sector envisages overcoming the cost disabilities of the industry for manufacture of Advanced Automotive Technology products in India. The incentive structure will encourage industry to make fresh investments for indigenous global supply chain of Advanced Automotive Technology products. It is estimated that over a period of five years, the PLI Scheme for Automobile and Auto Components Industry will lead to fresh investments of over 42,500 crores, incremental production of over 2.3 lakh crore and will create additional employment opportunities of over 7.5 lakh jobs. Further this will increase India’s share in global automotive trade. The Government notified the scheme in Sep’21. The scheme was closed on 9th Jan. MHI has processed the applications received under Champion OEM Incentive scheme and 20 applicants (along with their 12 subsidiaries) have been approved under this category of the scheme. Applications for Component Champion Incentive scheme are being processed separately.
Approved applicant (i.e. post receipt of Approval letter under the Scheme) shall apply for registration/ approval of their products as approved eligible Advanced Automotive Technology (AAT) products with Testing Agency of MHI on an ongoing basis.An approved applicant under Champion OEM scheme will have option to seek incentive for any number of permissible AAT Vehicle products. Similarly, an approved applicant under Component Champion scheme will have option to seek incentive for any number of permissible AAT Component products. It may, however, be noted that Total Incentive per entire Group company(ies) is capped at 6,485crore (25% of total incentives outlay under this Scheme).
The information sought in the application form regarding AAT products is indicative only. There will not be any mention of AAT products in the approval letter to be issued by MHI/ PMA. The applicant once approved may change their selected AAT products at any time with intimation to MHI/ PMA. It may further be noted that post approval/ selection of applicant under the Scheme; the approved applicant will apply for registration of their products as eligible Advanced Automotive Technology (AAT) products to seek incentive in this scheme. Pre-approval of eligible product will be done by Testing Agency of MHI as AAT Product. Minimum 50% domestic value addition will be required. Applicant can register with Testing Agency for new AAT products on an ongoing basis.
Existing automotive manufacturing company (EAMC) applying under both Champion OEM Incentive scheme and Component Champion Incentive scheme, will have to meet minimum cumulative domestic investment condition of 2,000 crore for Champion OEM Incentive scheme and of 250 crore for Component Champion Incentive scheme i.e. 2,250 crore in aggregate, by March 31, 2027. Existing automotive manufacturing company applying under both Champion OEM Incentive scheme and Component Champion Incentive scheme will have to meet minimum threshold determined sales value of 125 crore for Champion OEM Incentive scheme and of 25 crore for Component Champion Incentive scheme in the first year (i.e. FY2021-22).
New Non-Automotive Investor Company (NNIC) applying under both Champion OEM Incentive scheme and Component Champion Incentive scheme, will have to meet minimum cumulative domestic investment condition of 2,000 crore for Champion OEM Incentive scheme and of 500 crore for Component Champion Incentive scheme i.e. 2,500 crore in aggregate, by March 31, 2027. New Non-Automotive Investor Company applying under both Champion OEM Incentive scheme and Component Champion Incentive scheme will have to meet minimum threshold determined sales value of 125 crore for Champion OEM Incentive scheme and of 25 crore for Component Champion Incentive scheme in the first year (i.e. FY2021-22).The minimum new domestic investment condition is applicable for the eligibility of the applicant during the tenure of the scheme and it will be tested as per the scheme. Further, investment has to be made for eligible products under the Scheme. Accordingly, investment made for eligible products at consolidated level shall be considered for arriving at new domestic investment.
The Applicant needs to upload the following mandatory documents along with the information submitted in the application form.
Company Structure:Note: Any other document may be sought by PMA / MeitY for clarifications.
The company needs to fulfill the qualification and eligibility criteria for the target segment which is Specified Electronic Components and not for individual items. Therefore if a company is manufacturing both capacitors and PCBs, the incremental investment and incremental sales of manufactured goods considered for the purpose of determining eligibility and applicable incentive will be a sum for the two items i.e. the criteria has to be met after combining all items covered within the target segment and not individually.For the purpose of appraisal and approval under the PLI Scheme, the Competent Authority shall be defined as per delegation of powers for appraisal and approval of Public Funded Schemes and Projects vide OM No. 24(35)/PF-II/2012 dated 05.08.2016 issued by Department of Expenditure, Ministry of Finance or any subsequent modifications thereof. For the purpose of disbursal under the PLI scheme, Competent Authority will be as per procedure applicable in the Ministry for disbursement under other schemes.
A = Incremental sales in current year with reference to previous year or the base year whichever is higher
B = Weighted Average sales price of the applicant (net of taxes) in current year
C = Weighted Average sales price (net of taxes) in base year
D = Weighted Average sale price in current year $ #
Current year: means year for which PLI has been claimed $
To be worked out by JPC and notified by PMA every year
Incentive will be on reimbursement basis only after submission of claim. This claim required to be submitted only after sale of vehicle
Category ofe-Vehicle | OEM’s Registered | Vehicle Sold as on 26th November, 2021 |
---|---|---|
e-2W | Ather Energy | 1,36,714 |
Ampere Vehicles | ||
Okinawa | ||
Jitendra | ||
Hero Electric | ||
Revolt | ||
Li-ions Elektrik | ||
Tvs Motor | ||
Benling India | ||
Tunwal E-motors | ||
Bajaj Auto Ltd. | ||
Kabira Mobility | ||
LectrixEvPvt.ltd. | ||
Microcon i2i | ||
Ola Electric | ||
e-3W(including e-Rickshaws & e-cart ) | Mahindra Electric | 28,304 |
Kinetic | ||
Champion | ||
Victory Electric | ||
Y C Electric | ||
Best Way | ||
Avon Cycles | ||
Goenka Electric | ||
Energy Electric | ||
Thukral Electric | ||
Saera Electric | ||
U P Telelinks | ||
Khalsa Agencies | ||
Atul Auto | ||
Altigreen | ||
Dilli Electric | ||
Piaggio Vehicles | ||
Speego Vehicles | ||
Lohia Auto | ||
Omega Seiki | ||
Keto Motors | ||
Etrio Automobiles | ||
Mlr Auto | ||
Om Balajee Automobile India Pvt Ltd | ||
Jitendra | ||
GRD Motors | ||
Scooters India | ||
Continental Engines | ||
Euler Motors Pvt Ltd | ||
Grd Motors | ||
J.s. Auto Pvt Ltd. | ||
ShiganEvoltz Limited | ||
Sks Trade | ||
e-4W | Tata Motors | 1,817 |
Mahindra & Mahindra | ||
Total | 1,66,835 |
Keeping in view the climate change commitments made by Government of India during the COP21 Summit held at Paris to reduce emission intensity by 33- 35% by 2030 from 2005 levels, it is pertinent to introduce alternative means in the transport sector which can be coupled with India’s rapid economic growth, rising urbanization, travel demand and country’s energy security. Electric mobility presents a viable alternative in addressing these challenges, when packaged with innovative pricing solutions, appropriate technology and support infrastructure and thus, has been on the radar of Government of India.
Electric mobility will also contribute to balancing energy demand, energy storage and environmental sustainability. Electric vehicles could help diversify the energy needed to move people and goods thanks to their reliance on the wide mix of primary energy sources used in power generation, greatly improving energy security. Thanks to their storage capacity, they could help support the uptake of clean electricity, enabling greater use of variable renewable in electricity production. If coupled with the decarburization of the power sector, electric vehicles would also provide major contributions to keep the world on track to meet its shared climate goals.Electric mobility comes with zero or ultra-low tailpipe emissions of local air pollutants and much lower noise, and, by being one of the most innovative clusters for the automotive sector, can provide a major boost to the economic and industrial competitiveness, attracting investments, especially in countries.The Electric Vehicle industry in India is far behind, with less than 1% of the total vehicle sales. Currently, Indian roads are dominated by conventional vehicles and have approximately 0.4 million electric two-wheelers and a few thousand electric cars only. The Indian EV industry has been on the back seat due to various challenges.
The government of India has undertaken multiple initiatives to promote manufacturing and adoption of electric vehicles in India. With support of the government, electric vehicles have started penetrating in the Indian market. However, availability of adequate Charging Infrastructure is one of the key requirements for accelerated adoption of electric vehicles in India.Availability of adequate Charging Infrastructure is one of the key requirements for accelerating the adoption of electric vehicles in India. In this regard, Ministry of Power has issued “Charging Infrastructure for Electric Vehicles – Guidelines and Standards” mentioning the roles and responsibilities of various stakeholders at Central & State level, for expediting the development of public EV charging infrastructure across the country. Ministry of Power has designated Bureau of Energy Efficiency (BEE) as the Central Nodal Agency (CNA) for the National-level rollout of charging infrastructure in the country.
Approval to 75 auto parts makers under PLI scheme to act as catalyst in transformation journey.The approval granted by the government to 75 auto component manufacturers for incentives under the PLI scheme will act as a catalyst in the transformational journey from a conventional industry to a mobility industry. Out of a total of 92 auto component manufacturers that applied, 75 have been approved for incentives under the production-linked incentive (PLI) scheme for five years.The PLI Scheme for Automobile and Auto Components has been successful in attracting a proposed investment of 74,850 crore against the target estimate of investment of 42,500 crore over five years.The scheme commencing from FY22-23 has an outlay of 25,938 crore.The scheme will create a new paradigm of technological excellence in the automotive supply chain in India to make it globally competitive.
Recent policy announcements include the extension of FAME-II scheme, PLI scheme on ACC battery and policy initiatives on battery-swapping and energy-as-a-service.According to the Automotive Component Manufacturers Association of India (ACMA) - a total of 115 companies (auto and auto components) had filed their application. Of these, 20 have already been accorded approval for incentives in February 2022.The PLI scheme will not just help the component manufacturers become globally competitive but will also provide much-needed momentum to the 'Make in India' initiative.The scheme will lead to additional employment opportunities in India and provide an impetus to the industry to invest in cutting edge technologies to stay relevant.
A vehicle that works on an electric motor instead of an internal combustion engine is called an Electric Vehicle. EVs are electric vehicles with rechargeable batteries which can be charged by electricity from an external source.
Electric Vehicles are useful as they reduce the harmful emission released by the engine-based vehicle. They can be very helpful in reducing air pollution in the atmosphere.
EVs include Plug in Hybrid Electric Vehicles (PHEVs) and Hybrid Electric Vehicles (HEVs) in addition to pure battery electric vehicles (BEVs). PHEVs use both -petrol / diesel and electricity. These vehicles have two power systems, an internal combustion engine and a battery. The battery can be recharged by plugging the vehicle into an external source. HEVs combine conventional ICE systems with electric propulsion systems.They use regenerative braking to convert energy that is normally wasted during braking into electricity. This electricity is stored in a battery. There are eight types of Electric Vehicles:
No, EV subsidies will not come to your bank directly. The OEMs can bill the vehicle eligible for the subsidy and the customer may avail the demand incentive in terms of reduced prices.
Fleet operators are eligible for the subsidy for commercial applications.
An individual may buy multiple EVs and avail the demand incentive applicable for each of them.
Yes, even corporates and organizations will receive the subsidy as per the government norms and FAME II.
Self capitalized vehicles will also get a subsidy on the EVs meeting the FAME II eligibility criteria.
To avail of benefits offered under the Fame India scheme, applicants have to provide address and identity proof.
The Incentive given in the Second Phase of the FAME India Scheme is through the reduction in the cost of the EVs so that the Vehicle becomes affordable. There is also an incentive in the form of subsidies.
FAME India Scheme is the second phase of the National Mission on Electric Mobility Plan. The Main purpose of the scheme is to advance in the eco-friendly vehicle Industry and reduce the pollution caused by fuel burning.
Electric Vehicles or EVs run on Electricity rather than the fuel. They only need charging stations to get their batteries charged for the run.
Two-wheeler Vehicles, three-wheeler Vehicles and Four wheeler vehicles are available under the scheme. The latest four-wheeler vehicles under the scheme are Electric buses and Electric Cars.
The incentive given under the scheme is in the form of an affordable price range for the customers and the additional subsidies provided along with it.
The candidates need to register themselves with the local authorities concerning the scheme to get the benefits of the scheme.
The interested Candidates need to visit the official website and Click on the Scheme tab, then they need to choose a Model option from the menu. The complete list of the new and old models will appear on the screen.
Yes, the basic fundamentals of the scheme are that of the Make in India Scheme. The purpose of the scheme is to make the Indian Automotive industry a pioneering one.
To promote the manufacture and use of electric vehicles in India, the Govt. of India has introduced the FAME II (Faster Adoption and Manufacturing of Electric Vehicles Phase II) subsidy. It is a benefit given to the purchaser of the electric vehicle in the form of an upfront price reduction. The FAME II subsidy amount would be a minimum of the following:
Any individual, who has a valid identity proof and has never claimed the FAME II subsidy before for an electric 2-wheeler, is eligible. The name on the identity proof must exactly match the name of registration.
The FAME subsidy will be factored in the scooter price, in case you are eligible for it, and will not have to be claimed separately.In case, at the document verification stage, you are found to be ineligible for the subsidy, you would have to pay the full price.
EVSE includes the electrical equipment external to the EV that provides a connection for an EV to a power source for charging and is equipped with advanced features like smart metering, cellular capability and network connectivity.
Conventional petrol / diesel vehicles and Compressed Natural Gas (CNG) vehicles contribute to particulate emissions which is a major reason for vehicular based emission. Battery operated vehicles have zero tailpipe and noise emissions.
An electric car having around 30 kWh battery pack takes less than 1 hour to be charged up to 80% of its battery capacity using Fast Charger (50 kW), while to attain similar percentage of charging, Slow / Moderate charger (15 A plug) takes around 8 hours.
The cost for a single charge (home charge) shall vary State to State as per notified State EV tariff and battery capacity of the vehicle. This can be estimated by the formula = Battery capacity (in kWh) X EV charging tariff (in / kWh)
An EV has a higher upfront cost of procurement as compared to its ICE counterpart. However, the cost of charging, maintaining and operating an EV is lower than the ICE vehicle which in turns reduces the Total Cost of Ownership (TCO) of an EV. For example, Tata Tigor and Tata Tigor EV have been considered for calculation. Tata Tigor has a claimed range of approximately 20 kms per litre. Assuming, a running of 100 kms, it would consume around 5 litres of petrol. Assuming that the cost of petrol of 86.95 per litre, as of 08 Feb 2021. Hence, the cost of travelling 100 kms is 434.75. Tata Tigor EV, with a total battery capacity of 21.5 kWh, the total cost of charging the EV would be 21.5 kWh x 4.5 per kWh (Assuming EV home charging tariff for Delhi), i.e. around 96.75. Hence it is economical to operate an EV than ICE vehicle.
EV can be charged either at PCS or at your home. Government is deploying PCS at a faster pace so that EV owners can charge their vehicles comfortably. Apart from this, many Oil Marketing Companies (OMCs) are setting up EV charging stations at their oil retail outlets / fuel pumps such that EV owners can easily locate charging stations.
A lot of technology providers (i.e. Network Service Providers) are developing mobile based applications which shall provide information about nearest public charging point location, expected waiting time and cost of charging.
All EV batteries go through rigorous testing procedures at National Accreditation Board for Testing and Calibration Laboratories (NABL) certified labs. Certification agencies in India like ARAI, ICAT certify EV and Chargers. Thus, it is safe to drive an EV.
Central as well as State governments have been promoting adoption of EVs by providing fiscal as well as non-fiscal incentives. Some of the incentives being provided on purchase of EVs are:
The Union cabinet chaired by the Prime Minister Shri Narendra Modi has approved the proposal for implementation of scheme titled 'Faster Adoption and Manufacturing of Electric Vehicles in India Phase II (FAME India Phase II)' for promotion of Electric Mobility in the country from 2019-20 to 2021-2022. Further the scheme has been extended for a further period of 2 years i.e. upto March 31, 2024
The FAME scheme was introduced in April 2012 to be implemented over a period of 6 years till 2020 to support hybrid/electric vehicles market development and its manufacturing. Under this scheme, demand incentives will be availed by buyers (end users/consumers) upfront at the point of purchase and the same shall be reimbursed by the manufacturers from Department of Heavy Industries, on a monthly basis. The Union government recently announced its decision to extend the second phase of the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme by two years to March 31, 2024.
The demand incentive benefit will be passed on to the consumer upfront at the time of purchase of the xEV itself by way of paying reduced price.
Presently scheme is applicable in selected areas like as notified separately broadly covering following cities:
Phase I of the scheme is a sort of pilot project just to see the reaction of people to the electric and hybrid vehicles. If this phase is successful, in next phase, scheme will be applicable throughout the country.
Yes, the demand incentive will be available for all types and self-capitalized vehicles as well.
Yes, the demand incentive will be applicable for fleet operators for commercial applications as well.
Yes, the OEM can bill the vehicle and customer may avail the demand incentive.
Yes, the incentive will be available to corporate and organizations also.
Yes, an individual may buy multiple xEVs and avail the demand incentive applicable for each of them.
The fact is that a typical conventional hatchback has 130-140 gm/km of CO2 emission comparing to an electric vehicle for 100 gm/km when charged by grid and when solar charged, there is ~0 gm/km CO2 emission from an electric vehicle.
No, there is no such condition in the present guidelines
Demand incentive under FAME India scheme is available only to vehicles that are regulated by the Central Motor Vehicle Rules (CMVR)and meet other qualifying criteria laid out in the FAME scheme. As such these vehicles meet all the safety regulations as applicable in the country.
No, as per scheme guidelines, incentive will be on reimbursement basis only after submission of claim. This claim required to be submitted only after sale of vehicles.
Some of the key concerned industry associations for automobiles and components are:
National Automotive Board is the apex body dealing with automotive sector.
The Ministry of Heavy Industries, Government of India, deals with areas related to vehicles and automotive parts. Entire Automotive industry falls under the concern of Heavy Industries Ministry.
The PLI Scheme for the auto sector envisages overcoming the cost disabilities of the industry for manufacture of Advanced Automotive Technology products in India. The incentive structure will encourage industry to make fresh investments for indigenous global supply chain of Advanced Automotive Technology products. It is estimated that over a period of five years, the PLI Scheme for Automobile and Auto Components Industry will lead to fresh investments of over 42,500 crores, incremental production of over 2.3 lakh crore and will create additional employment opportunities of over 7.5 lakh jobs. Further this will increase India’s share in global automotive trade. The Government notified the scheme in Sep’21. The scheme was closed on 9th Jan. MHI has processed the applications received under Champion OEM Incentive scheme and 20 applicants (along with their 12 subsidiaries) have been approved under this category of the scheme. Applications for Component Champion Incentive scheme are being processed separately.
IFCI Limited (IFCI), having its Registered and Head/ Corporate Office at IFCI Tower, 61 Nehru Place, New Delhi – 110019, has been appointed as PMA for the Scheme. Email ID of the PMA is pliauto@ifciltd.com
The official portal of the Scheme is https://pliauto.in/. All the relevant information such as notifications on Scheme, Guidelines, FAQs, format of Application Form and List of Advanced Automotive Technology Products is available as public information on this portal. All applications are to be submitted through this online portal. The online application form shall be accessible after due registration by the applicant on the portal.
As per paragraph 5 of the notification dated 09/11/2021 regarding
the window for receiving applications through the Notice Inviting Applications will be open for a period of 60 days from the date of its publication in the official Gazette. Accordingly, the window for receiving Applications is already open with effect from 11th November, 2021 till 23:59:59 hours IST on 9th January, 2022.
Yes, as per clause 2.17 of the guidelines, such companies shall be treated as group companies under the Scheme.
No. Revenue/ investment/ net worth of individual promoters will not be considered under Global group revenue/ Global Investment/ Global net worth, respectively, for eligibility under the Scheme because the scheme recognizes company/ group company(ies), not individual promoters.
The capital expenditure on Engineering Research & Development (ER & D) and product design & development is allowed under the all be allowed for the purpose of Investment under the Scheme. The term “related” here refers to all stages in the entire value chain of scheme. It is further clarified that the Capital expenditure on ER & D and product design & development related to the eligible products shthe goods proposed to be manufactured including software integral to the functioning of the same. Such expenditure shall include expenditure on in-house and captive ER & D, directly attributable to eligible products, including all stages in the entire value chain of the goods proposed to be manufactured including software integral to the functioning of the same. Such expenditure shall include test and measuring instruments, prototypes used for testing, purchase of design tools, software cost (directly used for ER & D) & license fees, expenditure on technology & transfer of technology (ToT) Agreements including the purchase of technology, IPR, Patents and copyrights for ER & D, subject to all relevant documents for same being submitted to MHI/ PMA.
No. The expenditure on royalty is not covered under the scheme
Approved applicant (i.e. post receipt of Approval letter under the Scheme) shall apply for registration/ approval of their products as approved eligible Advanced Automotive Technology (AAT) products with Testing Agency of MHI on an ongoing basis.
An approved applicant under Champion OEM scheme will have option to seek incentive for any number of permissible AAT Vehicle products. Similarly, an approved applicant under Component Champion scheme will have option to seek incentive for any number of permissible AAT Component products. It may, however, be noted that Total Incentive per entire Group company(ies) is capped at 6,485crore (25% of total incentives outlay under this Scheme).
The information sought in the application form regarding AAT products is indicative only. There will not be any mention of AAT products in the approval letter to be issued by MHI/ PMA. The applicant once approved may change their selected AAT products at any time with intimation to MHI/ PMA. It may further be noted that post approval/ selection of applicant under the Scheme, the approved applicant will apply for registration of their products as eligible Advanced Automotive Technology (AAT) products to seek incentive in this scheme. Pre-approval of eligible product will be done by Testing Agency of MHI as AAT Product. Minimum 50% domestic value addition will be required. Applicant can register with Testing Agency for new AAT products on an ongoing basis.
Existing automotive manufacturing company (EAMC) applying under both Champion OEM Incentive scheme and Component Champion Incentive scheme, will have to meet minimum cumulative domestic investment condition of 2,000 crore for Champion OEM Incentive scheme and of 250 crore for Component Champion Incentive scheme i.e. 2,250 crore in aggregate, by March 31, 2027. Existing automotive manufacturing company applying under both Champion OEM Incentive scheme and Component Champion Incentive scheme will have to meet minimum threshold determined sales value of 125 crore for Champion OEM Incentive scheme and of 25 crore for Component Champion Incentive scheme in the first year (i.e. FY2021-22).
New Non-Automotive Investor Company (NNIC) applying under both Champion OEM Incentive scheme and Component Champion Incentive scheme, will have to meet minimum cumulative domestic investment condition of 2,000 crore for Champion OEM Incentive scheme and of 500 crore for Component Champion Incentive scheme i.e. 2,500 crore in aggregate, by March 31, 2027. New Non-Automotive Investor Company applying under both Champion OEM Incentive scheme and Component Champion Incentive scheme will have to meet minimum threshold determined sales value of 125 crore for Champion OEM Incentive scheme and of 25 crore for Component Champion Incentive scheme in the first year (i.e. FY2021-22).
The minimum new domestic investment condition is applicable for the eligibility of the applicant during the tenure of the scheme and it will be tested as per table at Para 3.2 (c) of the scheme. Further, as per para 2.19 of the guidelines, investment has to be made for eligible products under the Scheme. Accordingly, investment made for eligible products at consolidated level shall be considered for arriving at new domestic investment.
S. No. | State | State EV Policy |
---|---|---|
1 | Andhra Pradesh | https://www.acma.in/uploads/doc/AP%20Policy_final.pdf(link is external) |
2 | Karnataka | https://kum.karnataka.gov.in/KUM/PDFS/KEVESPPolicyInsidepagesfinal.pdf(link is external) |
3 | Kerala | https://anert.gov.in/sites/default/files/inline-files/go20190310_Trans-24 -Ms_e_vehicle_policy_.pdf(link is external) |
4 | Delhi | https://transport.delhi.gov.in/sites/default/files/All-PDF/Delhi_Electric_Vehicles_Policy_2020.pdf(link is external) |
5 | Maharashtra | https://www.msins.in/guidelines_docs/english/EV_Policy.pdf(link is external) |
6 | Uttarakhand | https://www.siidcul.com/upload/industrialPolicy/electric1576487934.pdf(link is external) |
7 | Madhya Pradesh | https://www.siidcul.com/upload/industrialPolicy/electric1576487934.pdf(link is external) |
8 | Tamil Nadu | https://cms.tn.gov.in/sites/default/files/go/ind_e_176_2019.pdf(link is external) |
9 | Uttar Pradesh | http://udyogbandhu.com/DataFiles/CMS/file/Electrical%20%20vehicle%20policy_english_Aug7_2019.pdf(link is external) |
10 | Telangana | https://tsredco.telangana.gov.in/Updates_2020/Telangana_EVES_policy_2020_30.pdf(link is external) |
11 | Bihar | http://www.investbihar.co.in/Download/Draft_for_e_vechile.pdf(link is external) |
12 | Gujarat | https://wri-india.org/sites/default/files/3.D1_S1_Gujarat%20State%20EV%20Draft%20Policy_Akash%20Davda.pdf(link is external) |
13 | Punjab | http://punjabtransport.org/Punjab%20EV%20Policy_Final%20Draft%2015112019_Upload.pdf(link is external) |
14 | Haryana | https://haryanatransport.gov.in/sites/default/files/Electric%20Vehicle%20Policy_2.pdf(link is external) |
S. No. | State | Tariff Order approved by State Electricity Regulatory Commission (SERC)* |
---|---|---|
1 | Uttar Pradesh | https://www.upenergy.in/site/writereaddata/UploadNews/corrigendum/pdf/C_201903141428135216.pdf(link is external) |
2 | Punjab | http://pserc.gov.in/pages/7.%20Chapter%207%20PSPCL%20Tariff%20Order%20FY%202020-21.pdf(link is external) |
3 | Gujarat | https://www.gercin.org/wp-content/uploads/document/549522c6-8a24-4049-8c17-a99a01b6b351.pdf(link is external) |
4 | Chandigarh | http://chdengineering.gov.in/pages/Tariff-Order-FY-2020-21.pdf (link is external) |
5 | Telangana | http://www.tsnpdcl.in/Amendment%20tariff%20order (link is external) |
6 | Karnataka | https://karunadu.karnataka.gov.in/Tariff%20Order%202019/BESCOM/8-BESCOM%20-%20CHAPTER%20-%20%206.pdf(link is external) |
7 | Andhra Pradesh | http://aperc.gov.in/admin/upload/RSTFY2021.pdf(link is external) |
8 | Kerala | https://erckerala.org/orders/ARR%20ERC%20-%202018-19%20to%202021-22.pdf(link is external) |
9 | Delhi | http://www.derc.gov.in/sites/default/files/Tariff%20Schedule%202020-21.pdf(link is external) |
10 | Maharashtra | https://www.mahadiscom.in/consumer/wp-content/uploads/2020/04/Commercial_Circular_for_MYT_Order-3.pdf(link is external) |
11 | Uttarakhand | http://www.uerc.gov.in/ordersPetitions/orders/Tariff/Tariff%20Order/2020-21/UPCL/Admittance%20Order.pdf(link is external) |
12 | Madhya Pradesh | http://www.mperc.in/Retail%20Supply%20Tariff%20Order%20for%20FY%202020-21.pdf(link is external) |
13 | Jharkhand | https://jbvnl.co.in/upload/0IOKV9.jbvnl%20tariff%20order%202020-2021.pdf(link is external) |
14 | Haryana | https://uhbvn.org.in/staticContent/documents/Tariff.pdf(link is external) |
15 | Chhattisgarh | http://www.cserc.gov.in/upload/upload_news/04-07-2020_15938599571.pdf(link is external) |
16 | Rajasthan | https://rerc.rajasthan.gov.in/rerc-user-files/office-orders (link is external) |