FAME II: The government’s new ‘PM Electrical Drive Revolutionary in Innovative Vehicle Enhancement (PM E-Drive) Scheme’ has been well received by producers of electric vehicles (EVs). The program aims to promote electric mobility across the country.
What is FAME II
This program is a much-needed reaction to the industry’s plea for ongoing support after the Faster Adoption and Manufacturing of Electric (FAME)-II plan was not extended.The Electric Mobility Promotion Scheme (EMPS), 2024, took the place of the FAME subsidy. It was first implemented by the Department of Heavy Industry in 2015 and ran out on March 31 of this year. It went into force on April 1.
The FAME-II subsidy is being replaced by the new plan. EV producers are greatly boosted by the new PM E-Drive program, especially in the two-wheeler market. Prominent industry players, like Tarun Mehta, the CEO and cofounder of Ather, have voiced concerns regarding the sector’s slowing growth, which they mostly ascribe to the elimination of FAME subsidies. Phase-II of the FAME Scheme was approved by the government on April 1, 2019. It will cost Rs. 10,000 crore over three years.The FAME scheme budget was cut by about 44% by the national government to Rs 2,671 crore for FY25. It could cause the country to slow the adoption of EVs.
Objective of FAME II
FAME II promotes the use of renewable energy sources for transportation needs. It was purposefully created to address environmental concerns, particularly in terms of pollution mitigation. This helps to further initiatives that aim to foster cleaner and more environmentally friendly mobility solutions in the nation.
