FAME India Scheme – UPSC Prelims

Ministry : Ministry of Heavy Industries and Public Enterprises

Aims to provide fiscal and monetary incentives for adoption and market creation of both hybrid and electric technologies vehicles in the country.

Scheme:

FAME stands for Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles
The scheme has 4 focus areas i.e.
- Technology development,
- Demand Creation,
- Pilot Projects and
- Charging Infrastructure.
The FAME India Scheme is aimed at incentivizing all vehicle segments i.e. 2 Wheeler, 3 Wheeler Auto, Passenger 4 Wheeler Vehicle, Light Commercial Vehicles and Buses.

Factual Information:

Updates:

Government has withdrawn subsidy given to mild hybrid vehicles
Earlier, subsidy was given to mild hybrid, strong hybrid, plug-in hybrid and pure electric vehicles
The Cabinet Committee on Economic Affairs (CCEA) has approved Rs 10,000 crore package over three years till 2022 for the second phase of FAME Scheme.
FAME II emphasizes on electrification of the public transportation that includes shared transport.
The Scheme would provide incentives on operational expenditure model for electric buses which will be delivered through State/city transport corporation (STUs).
In the 3-wheeler and 4-wheeler segment incentives will be applicable mainly to vehicles used for public transport or registered for commercial purposes.

What is mild hybrid vehicle?

A mild hybrid vehicle has an electric motor, which on its own cannot run a vehicle but assists normal engine by using recovered energy stored in a battery and helps save fuel.
It uses the energy generated while applying the brakes and turns it into electric energy which is then stored in a battery. This energy can then be used to turn the starter motor when the car’s start stop system needs it.
Mild-hybrids are 7-15% more fuel efficient as compared to conventional hybrid systems that can run on pure electric power for short distances too.