FAME Scheme: Boosting eco-friendly Vehicles


Union Government on 1 April 2015 launched Faster Adoption and Manufacturing of Hybrid and Electric vehicles (FAME) – India Scheme. The scheme was launched as part of the National Mission for Electric Mobility to boost eco-friendly vehicles sales in the country.
Facts about FAME India scheme
  • To support the hybrid or electric vehicles market development and its manufacturing eco-system in the country in order to achieve self-sustenance in stipulated period.
  • The overall scheme is proposed to be implemented over a period next 6 years i.e. till 2020.
  • It envisages providing Rs 795 crore support till 2020 for the manufacturing and sale of electric and hybrid vehicles.
  • It also seeks to provide demand incentives to electric and hybrid vehicles from two-wheeler to buses.

FAME scheme


  • It will be implemented in phases. The Phase-1 will be implemented over a two year period in FY15-16 and FY16-17. Based on the outcome and experience from the Phase-1, it will be reviewed for implementation after 31 March 2017. Then appropriate fund will be allocated for future.
  • Four focus areas of scheme- Technology development, Pilot Projects, Demand Creation and Charging Infrastructure. In the first two years Rs 260 crore and Rs 535 crore will be spent on the focus areas.
  • The Department of Heavy Industries under the aegis of Union Ministry of Heavy Industries will be will be nodal department for the scheme.

The demand incentives that will be given to boost sales of hybrids and EVs will be in the range of:

– Rs 1,800 to Rs 22,000 for scooters

– Rs 3,500 to Rs 29,000 for motorcycles

– Rs 3,300 to Rs 54,000 for CNG/diesel three-wheeler variants

– Rs 3,300 to Rs 61,000 for petrol-engined three-wheelers

– Rs 13,000 to Rs 124,000 for sub-4-metre four-wheelers

– Rs 11,000 to Rs 138,000 for four-wheelers above 4 metres long

– Rs 17,000 to Rs 187,000 for LCVs (CNG / diesel variants)

– Rs 34 lakh to Rs 66 lakh for buses (CNG variants)

– Rs 30 lakh to Rs 61 lakh for diesel-engined buses

If executed as per the plan, the scheme will lead to a substantial decrease in carbon dioxide emissions by 24 million tonnes, fuel savings of up to 9,500 million litres valued at Rs 60,000 crore and creation of around 3,00,000 jobs by 2020.


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