Modifications in FAME II Scheme

  • IASbaba
  • June 15, 2021
  • 0
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Modifications in FAME II Scheme

Part of: GS Prelims and GS III – Economy

In news

  • Department of Heavy Industry (DHI) has recently modified FAME II scheme.
  • Objective of the modification: To drive adoption of electric vehicles


  • Introduction of a demand incentive of Rs. 15,000 per kWh for electric two wheelers with a maximum cap at 40% of the vehicles’ cost. 
  • Launch of an aggregate demand for 300,000 electric three- wheelers by Energy Efficiency Services Limited.

FAME scheme 

  • It was launched in 2015 
  • It forms a part of National Electric Mobility Mission Plan 2020
  • It aims to promote manufacturing of electric and hybrid vehicle technology and to ensure sustainable growth of the same 
  • Phase 2 of the scheme was approved for a period of three years starting from first April 2019 
  • It aims to generate demand by way of supporting e-buses, e 2-wheelers,  e three- wheelers 
  • By selling over 75,000 vehicles FAME has so far resulted in savings of over 20 million litres of fuel and has led to almost 40 million kg reduction in CO2.

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