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Indian Economy

FAME India Phase II

  • 02 Mar 2019
  • 2 min read

Recently the Union cabinet has approved the proposal for implementation of 'Faster Adoption and Manufacturing of Electric Vehicles in India Phase II (FAME India Phase II)' scheme for promotion of Electric Mobility in the country.

  • The scheme with total outlay of Rs 10000 Crores over the period of three years (2019-20 to 2021-22) will be implemented with effect from 1st April 2019.
  • This scheme is the expanded version of the present scheme titled 'FAME India1’ which was launched on 1st April 2015, with total outlay of Rs. 895 crores.


  • Encourage Faster adoption of Electric and hybrid vehicle by way of offering upfront Incentive on purchase of Electric vehicles.
  • Establish a necessary charging Infrastructure for electric vehicles.
  • The scheme will help in addressing the issue of environmental pollution and fuel security.

Salient Features

  • Emphasis on electrification of the public transportation that includes shared transport.
  • In 3-Wheel (W) and 4-Wheel (W) segment incentives will be applicable mainly to vehicles used for public transport or registered for commercial purposes.
  • In the 2-Wheel (W) segment, the focus will be on the private vehicles.
  • To encourage advance technologies, the benefits of incentives, will be extended to only those vehicles which are fitted with advance battery like a Lithium Ion battery and other new technology batteries.
  • The scheme proposes for establishment of charging infrastructure, whereby about 2700 charging stations will be established in metros, other million plus cities, smart cities and cities of Hilly states across the country so that there will be availability of at least one charging station in a grid of 3 km x 3 km.
  • Establishment of Charging stations are also proposed on major highways connecting major city clusters.
    • On such highways, charging stations will be established on both sides of the road at an interval of about 25 km each.
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