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.
  • 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:
  • Launched in 2015 under National Electric Mobility Mission Plan (NEMMP)
  • Government has withdrawn subsidy given to mild hybrid vehicles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.

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