Department of Heavy Industries (DHI) on March 08, 2019 introduced the second phase of the scheme for Faster Adoption and Manufacturing of Electric Vehicles in India (FAME II). FAME II scheme came into effect from April 01, 2019 and will be valid till March 31, 2024.
The scheme primarily focuses on three verticals with different fund allocations:
▪ Demand Incentives of INR 8596 crore
▪ Establishment of network of Charging Stations of INR 1000 crore
▪ Administration of Scheme including publicity and Information, Education & Communication activities of INR 38 crore
On June 11, 2021, DHI modified the FAME II scheme to provide for the following:
▪ Increase the demand incentive for electric two wheelers to INR 15000 per KWh
▪ Increase the limit on incentives for two-wheelers from 20% to 40%
▪ Increase the subsidy by 50% for electric two-wheeler vehicles
Department of Heavy Industries (DHI) also asked the CPSU Energy Efficiency Services Ltd (EESL) to aggregate demand for 3 lakh electric three wheelers for multiple user segments as well as aggregate demand for e-buses in cities with population above 4 million starting with Mumbai, Delhi, Bengaluru, Hyderabad, Ahmedabad, Chennai, Kolkata, Surat, and Pune on operational expenditure basis.