Maarg Manthan · Topic 12.10

FAME India Scheme (Electric Vehicles)

Current Affairs & Government Schemes › Energy and Renewable Energy Schemes · Topic 12.10

FAME India, or Faster Adoption and Manufacturing of Hybrid and Electric Vehicles in India, is a Ministry of Heavy Industries scheme that gives purchase incentives and funds charging stations to speed up electric mobility. Phase I ran from 1 April 2015 with Rs 895 crore. Phase II began on 1 April 2019 with Rs 10,000 crore, later raised to about Rs 11,500 crore, and ended on 31 March 2024. After an interim scheme, the PM E-DRIVE Scheme was notified on 29 September 2024 with an outlay of about Rs 10,900 crore, reported to be extended to 31 March 2028, with focus on electric buses, trucks, ambulances and three wheelers.

6 min read · UPSC Prelims · Current Affairs & Government Schemes · Energy and Renewable Energy Schemes

At a Glance

Phase I April 2015 to March 2019, Rs 895 crore
Phase II April 2019 to March 2024, about Rs 11,500 crore
Successor PM E-DRIVE, notified 29 September 2024
Ministry Heavy Industries
Type Central Sector Scheme
Exam link UPSC Prelims, Current Affairs and Government Schemes: Energy and Renewable Energy Schemes

Where Does It Fit?

This topic covers the subsidy schemes that put the earlier electric mobility plan into practice. It closes the macro on energy by linking clean power with clean transport. Previous topic: National Electric Mobility Mission Plan (NEMMP). Next topic: National Action Plan on Climate Change (NAPCC).

What Are the Phases of FAME India?

Scheme	Key details
FAME I	1 April 2015 to 31 March 2019, with Rs 895 crore, covering technology development, demand creation, pilot projects and charging infrastructure, and about 2.8 lakh vehicles supported as reported
FAME II	1 April 2019, first with Rs 10,000 crore for three years, later extended to 31 March 2024 and raised to about Rs 11,500 crore
FAME II targets	About 7,090 electric buses, 5 lakh three wheelers, 55,000 four wheeler passenger cars, 10 lakh two wheelers and about 2,700 to 2,900 charging stations, as set in the scheme
Two wheeler incentive	Rs 10,000 per kWh of battery capacity at the start, raised to Rs 15,000 in 2021 and cut back to Rs 10,000 in June 2023, with a cap on the share of ex-factory price
EMPS 2024	The Electric Mobility Promotion Scheme ran from 1 April 2024 to September 2024 with about Rs 500 crore as a short bridge for two and three wheelers
PM E-DRIVE	PM Electric Drive Revolution in Innovative Vehicle Enhancement Scheme, notified 29 September 2024 as the successor to FAME II, with an outlay of about Rs 10,900 crore

What Does PM E-DRIVE Support and What Is Its Status?

Vehicle targets: as notified, the scheme supports about 24.79 lakh electric two wheelers, 3.16 lakh electric three wheelers and 14,028 electric buses
Charging infrastructure: about 72,000 public charging stations are planned, including fast chargers for four wheelers, buses and two and three wheelers
Electric buses: support for e-buses for nine large cities, through demand aggregation and a payment security mechanism, as reported
New categories: electric trucks, electric ambulances and other segments were added, with testing infrastructure
Phase out for cars: private electric four wheelers and hybrids are not given purchase subsidy, as the focus is on public and shared transport
Tenure: reported to be extended from 31 March 2026 to 31 March 2028, as reported
Two wheeler subsidy end: the incentive for electric two wheelers was reported to continue only up to 31 July 2026, while three wheelers continue to March 2028
Outlay confusion: one source cites Rs 11,900 crore for the extended scheme, but Rs 10,900 crore is the widely reported figure, so verify against the Ministry notification

What Else Should You Remember?

Full form and ministry: Faster Adoption and Manufacturing of Hybrid and Electric Vehicles in India, run by the Ministry of Heavy Industries
Local content: FAME II required a phased manufacturing programme and a minimum local content in vehicles, and subsidy was cut off for makers who did not comply
Fake subsidy claims: in 2023 the Government found several makers had claimed subsidy without meeting local content rules, and action was taken to recover amounts
Subsidy cut: the subsidy cut in June 2023 reduced demand growth for electric two wheelers for a few months
Charging gaps: public charging stations remain concentrated in a few cities and highways
Interim scheme: FAME II lapsed in March 2024, and EMPS 2024 was introduced as a stop gap
PLI link: the Production Linked Incentive scheme for the auto sector has an outlay of about Rs 25,938 crore, and the one for advanced chemistry cell batteries about Rs 18,100 crore
Policy link: NEMMP is the plan under which the first phase began, as in National Electric Mobility Mission Plan (NEMMP)
Link with climate goals: electric transport supports the net zero target of 2070, as in Panchamrit Climate Commitments (COP26)
Battery supply: dependence on imported cells and critical minerals is a risk, which has led to a national critical minerals mission
Share of electric vehicles: electric vehicles make up a growing but still small part of total vehicle sales, with two and three wheelers leading and cars and buses lagging
Criticism: critics say that subsidies went mostly to private two wheelers, that benefits reached a small group, and that public transport and charging needed more help

Why Does It Matter for the Exam?

Full form: Faster Adoption and Manufacturing of Hybrid and Electric Vehicles
Phases: years and outlays of Phase I and II, and the 2024 successor
Beneficiaries: which segments get support under PM E-DRIVE
Link: how FAME is related to NEMMP and to the Production Linked Incentive scheme
Common errors: treating FAME II as still running, or giving the wrong ministry

As an analytical point, supporting public transport and commercial vehicles gives more benefit per rupee than subsidising private cars. The weak link is charging and battery supply, and the success of the move depends on clean electricity and reliable local manufacturing.

Why Is This Topic Important?

Phases I, II and PM E-DRIVE
Numbers Outlays and targets
Status Extension to 2028

What Came Next?

The next macro covers environment and climate schemes. Next topic: National Action Plan on Climate Change (NAPCC).

Key People and Terms

FAME Faster Adoption and Manufacturing of Hybrid and Electric Vehicles
EMPS Electric Mobility Promotion Scheme
PM E-DRIVE Successor scheme notified in 2024
kWh Unit of battery capacity
Demand incentive Subsidy on purchase
PLI Production Linked Incentive

Exam Corner

Points to Remember

FAME I: 2015, Rs 895 crore.
FAME II: April 2019, ended 31 March 2024.
PM E-DRIVE: 29 September 2024, about Rs 10,900 crore.
Extended to 31 March 2028, as reported.
Ministry: Heavy Industries.

Do Not Confuse With

FAME II and PM E-DRIVE The earlier scheme that ended in 2024 versus its successor
FAME and PLI Demand subsidy versus manufacturing incentive
EMPS 2024 and PM E-DRIVE A short bridge scheme versus a multi year scheme

Memory Hook

FAME one in fifteen, FAME two in nineteen, E-DRIVE in twenty-four.

Mains Angle

Questions ask about the effectiveness of electric vehicle subsidies. These points give a balanced frame.

Benefits Lower oil imports, cleaner air, new industry
Concerns Subsidy design, charging, batteries
Way forward Public transport focus, local cells, charging network

A Question You May Face

An original practice question, not a past paper question.

“Evaluate the FAME India scheme and discuss how its successor can better promote electric mobility in India.”

How to Answer

Aim Faster electric vehicle adoption.
Method Subsidy and charging stations.
Gaps Compliance, charging, batteries.
Way Public transport focus.

GS Relevance

Prelims: full form, phases, outlays, ministry, successor scheme. GS Paper 3: energy security, transport, clean technology, manufacturing, climate change.

Frequently Asked Questions

What is FAME India?

What was the outlay of FAME II?

FAME II began on 1 April 2019 with an outlay of Rs 10,000 crore for three years. It was later extended to 31 March 2024 and the outlay was raised to about Rs 11,500 crore. It targeted buses, three wheelers, passenger cars, two wheelers and charging stations, and ended in March 2024.

What is PM E-DRIVE?

PM E-DRIVE, the Prime Minister Electric Drive Revolution in Innovative Vehicle Enhancement Scheme, was notified on 29 September 2024 as the successor to FAME II. It has an outlay of about Rs 10,900 crore and supports electric two and three wheelers, buses, ambulances, trucks and public charging stations.

Which ministry runs FAME India?

The Ministry of Heavy Industries runs FAME India and PM E-DRIVE, as a Central Sector Scheme. The Department of Heavy Industries sets rules and releases subsidy to manufacturers, who pass the benefit on to buyers, and the National Automotive Board helps with implementation and verification.

What is the latest status of FAME India?

FAME II ended on 31 March 2024. PM E-DRIVE is now the main scheme and was reported to be extended to 31 March 2028. The subsidy for electric two wheelers was reported to run only up to 31 July 2026, while three wheelers continue. Check the Ministry notification for current rates.

PYQ Practice — Statement Analysis

1 FAME II began on 1 April 2019.

True

It ended on 31 March 2024.

2 FAME India is run by the Ministry of Road Transport and Highways.

False

It is run by the Ministry of Heavy Industries.

3 PM E-DRIVE was notified in September 2024.