Electric Vehicles (EV) and FAME Scheme in India UPSC Notes

Electric Vehicles and FAME Scheme – Steps taken to promote EVs – Challenges (Prelims, Mains GS3)

Electric Vehicles (EV) and FAME Scheme in India

Electric Vehicles and FAME Scheme

  • The National Electric Mobility Mission Plan includes FAME India.
  • FAME - Faster Adoption and Manufacturing of Electric Vehicles 
  • FAME's main goal is to encourage the use of electric vehicles by providing financial incentives.
  • The FAME India Scheme aims to incentivize all types of vehicles.
  • The scheme is divided into two phases:
    • Phase I began in 2015 and concluded on March 31, 2019.
    • Phase II: began in April 2019 and will be completed by March 31, 2022.
  • Monitoring Authority: Department of Heavy Industries, the Ministry of Heavy Industries and Public Enterprises.
  • Fame India Scheme has four focus Areas:
    • Technology development
    • Demand Creation
    • Pilot Projects
    • Charging Infrastructure
  • The FAME Scheme aims to accelerate the adoption of electric and hybrid vehicles by providing an upfront incentive on electric vehicle purchases.
    • Ensure that electric vehicles have the necessary charging infrastructure.
      • To address the issues of pollution and fuel security in the environment.

      Steps taken to promote EVs

      • The global climate agenda established under the Paris Agreement to reduce carbon emissions in order to limit global warming is driving the push for electric vehicles.
      • India is among a handful of countries that support the global EV 30@30 campaign, which aims for at least 30% new vehicle sales to be electric by 2030.
      • The FAME II (Faster Adoption and Manufacturing of Electric Vehicles) programme has been updated.
      • For the supplier side, there is a Production-Linked Incentive (PLI) scheme for Advanced Chemistry Cell (ACC).
      • For manufacturers of electric vehicles, the recently launched PLI scheme for Auto and Automotive Components.
      • 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. 


      • Battery Manufacturing- absence of a manufacturing base for batteries in India, 
      • Consumer Related Issues- Lack of charging stations, cost of a basic electric car is much higher than the average price of a car running on conventional fuel.
      • Policy Challenges: Uncertainty in government policies regarding electric vehicle production deters investment in the sector.
      • Lack of Technology and Skilled Labour
      • Unavailability of Materials for Domestic Production



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      Learnerz IAS: Electric Vehicles (EV) and FAME Scheme in India UPSC Notes
      Electric Vehicles (EV) and FAME Scheme in India UPSC Notes
      Electric Vehicles and FAME Scheme – Steps taken to promote EVs – Challenges (Prelims, Mains GS3)
      Learnerz IAS
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