FAME Scheme

4/9/2015 Anant Geete Launch’s the Scheme for Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India – Fame India

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08April2015 20:12 IST

Press Information Bureau Government of India

Ministry of Heavy Industries & Public Enterprises

Anant Geete Launch’s the Scheme for Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India– Fame India

Say , It is a Dire Necessity to Find Alternate Sources of Energy for Transport Which are EcoFriendly Yet CostEffective

Union Minister of Heavy Industries and Public Enterprises Shri Anant Geete today launched a scheme for Faster Adoptionand Manufacturing of (Hybrid &) Electric Vehicles in India, better known as FAME India at an event held at the IndiaHabitat Centre here in New Delhi for the stakeholders and the general public at large. The event was organized by TheDepartment of Heavy Industry (DHI) of the Government of India, in association with the Society of Indian AutomobileManufacturers (SIAM). On this occasion Shri G.M.Siddheswara, Minister of State, Heavy Industries and Public Enterprises,Shri Rajan Katoch and Additional Secretary Heavy Industry, Shri Ambuj Sharma were also present. Speaking on the occasion Shri Geete said in 2011, Union Cabinet approved the setting up of a National Mission on ElectricMobility (NMEM) under which two apex bodies were set up – National Council on Electric Mobility (NCEM) at theMinisterial level and the other – National Board on Electric Mobility (NBEM) at the Secretary level to formulate the roadmap for a new paradigm in road transportation centering around hybrid and electric vehicles. The Minister said Apart fromthe detailed field level study, including consumer survey conducted by a reputed global knowledge partner (M/s Booz &Co.) a number of meetings of NCEM and NBEM were held over the next 1 ½ years. Accordingly, Electric mobility wasincluded as a prominent theme for DHI in the the 12th Plan Five Year Plan document under the caption “A Hivingcompetence in manufacturing of fuel efficient cars and electric vehicles including hybrid segment”. The 12th Five YearPlan also approved an outlay of ` 795 crore for the same. Based on the road map prepared by the DHI, a National Electric Mobility Plan (NEMMP2020) was released in January2013 by the then Prime Minister. NEMMP 2020, drawing on various inputs received from all concerned stake holdersincluding different Ministries, Planning Commission, Industry and Academia, laid down a aspirational target of 67 millionhybrid and electric vehicles per year by 2020 provided commensurate incentives were extended by the Government fordemand and supply creation, technology and R&D projects, creation of public charging infrastructure and pilotprojects. The industry on its part is also expected to make substantial investments based on this long term vision plan. Shri Geete detailed Salient Features of FAME India scheme which are as under:

1. Based on the NEMMP 2020 road map, a detailed scheme titled “FAME India” (Faster Adoption and Manufacture of

Electric Vehicles in India) was drawn up by DHI and submitted for the approval of the Government. Based on theMinistry of Finance’s approval, FAME India scheme with an outlay of ` 795 crore under Plan Head has been launchedfor the initial two years – Phase I (201517). He said The breakup details of the two year allocation of Rs. 795 core is as follows:(Amount in Rupees)

Components of the scheme 201516 201617Technology Platform(Including testing infrastructure)

` 70 cr. `. 120 cr.

Demand Incentives `. 155 cr. ` 340 cr.Charging Infrastructure `. 10 cr. `. 20 cr.



Pilot Projects ` 20 cr. `. 50 cr.IEC/Operations `5 cr. ` 5 cr.Total (Rs.) `. 260 cr. `. 535 cr.Grand Total (Rs.) `. 795 cr.

Under the Budget 201516, an initial amount of ` 75 crore has been approved. It is expected that based on the successfulimplementation of the scheme and utilization of funds so far earmarked, further funds would be released for the purpose,the minister added.

On coverage the minister said this scheme would be covered throughout the country with the following four areas:

a. Cities under “Smart Cities” initiatives.b. Major metro agglomerations – Delhi NCR, Greater Mumbai, Kolkatta, Chennai, Bengaluri, Hyderabad,

Ahmedabad.c. All State and other Urban Agglomerations/Cities with 1 million+population (as per 2011 census)d. Cities of the North Eastern States

2. It will cover all vehicle segments i.e. two, three and four wheelers, cars, LCVs, Buses etc and all forms of hybrid(Mild/Strong/Plugin) and pure electric vehicles.

3. The demand incentive will be availed by buyers upfront at the point of purchase and the same shall be got reimbursedby the manufacturers from DHI, on a monthly basis. The broad range of demand incentive available for differentcategories of vehicles is as follows: (Incentive in Rupees)Vehicle Segment Minimum incentive ` Maximum incentive `2 wheeler scooter 1800 22,000Motorcycle 3500 29,0003 wheeler Autorikshaw 3300 61,0004 wheeler cars 11,000 1,38,000LCVs 17,000 1,87,000Bus 30,00,000 66,00,000

Retro Fitment Category 15 % or ` 30,000 if reduction in fuel consumption is 1030%

30 % of Kit price or ` or ` 90,000 if reduction in fuelconsumption is more than 30 %

On Technology Platform the Minister said one of the prime focus area under the scheme is to develop indigenoustechnology and R&D capability to develop and manufacture the entire range of electric components and subsystemsnecessary for hybrid and electric vehicles. He said the Technology Advisory Group on Electric Mobility (TAGEM) under the Cochairmanship of Shri AmbujSharma, Additional Secretary, DHI and Prof. Jhunjhunwala of IIT Madras with senior members from the DST, Industry andAcademia has been set up which is steering various initiatives in this field. The minister said Four SubGroups have been set up on vehicle system integration, motors and controllers and powerelectronics; batteries and battery management system and charging infrastructure. In each of these areas centres ofexcellence (COE) are being set up to provide the required thrust and shortterm, outcome oriented results. He said a number of R&D projects have already been initiated by DHI, for example development of offline and realtimesimulators for Xevs systems, design development for light weight vehicles, technology for solid state lithium ion batteryand COE for motors etc. He also informed that an amount of ` 30 crore is being released for the creation of necessary testing and homologationfacilities at ARAI, Pune for testing these new generation EV, within the country.



On Pilot Projects the minister said in order to test and demonstrate the technical capability of hybrid and electric vehiclesas well as market dynamics in realtime situation, a number of pilot projects are being launched in the coming monthsacross India, jointly with the State Governments and Industry etc. DHI shall provide viability of funding, installation ofcharging points etc., for the successful implementation of such pilot projects 4. A few examples of pilot projects under consideration are :

Running pure electric vehicles (7 seater) in the last 2 Kms at Taj Mahal (Agra) Pure Electric 2 wheeler vehicles for home delivery (Dominos, KFCs etc) Pure electric 3 wheelers/small 4 wheelers for fruit and vegetable distribution and garbage disposal etc. Electric cars for taxi fleets, corporate hire and rental scheme use etc. Last mile connectivity from metro stations. Hybrid and electric buses for public transport and creation of clean air islands for selected areas

On Public Charging Infrastructure the minister said to address issues of range anxiety amongst users of pure electricvehicles, a mix of slow and faster charging facilities needs to be created in different cities across India, on a scientific basis,taking into account population density of such vehicles and the local transportation pattern etc. Also ,India specific standards for both AC and DC chargers – slow and fast chargers are under formulation and will befinalized shortly. And, efforts are also being made to spur indigenous manufacturing of low cost, high quality chargers. On rationale for NEMMP 2020 |Shri Geete said estimated cumulative Fuel Savings by 2020 is – 9500 Million litres(equivalent). Savings of ` 62000 crore @ 64.95/litre petrol) There will also be reduction of pollution & greenhouse gas emissions ( 2 million tonnes) Local manufacturing of vehicles will lead to employment generation direct (job creation of 60 to 65 thousand +

indirect job creation in components like battery, motors, power electronic devices etc. totaling 2.5 to 3 lakhs)

On linkages the minister said FAME India Scheme has inherent and close Synergy with the following leading industries ofGovernment: “Make in India” Mission National Transport Policy National Action Plan for Climate Change (NAPCC)o National Solar Mission (NSM)o National Mission for Sustainable Habitat (NMSH)o National Mission for Enhanced Energy Efficiency (NMEEE)

The minister also informed that First National Workshop on FAME India Scheme and Electric Mobility was conducted byDHI on today morning at the India Habitat Centre, New Delhi which was attended by senior officers of the CentralMinistries/Departments, State Government/UT Administration apart from industry and academia. Details of the schemewere apprised to all the stake holders. Further, role of the State Governments particularly in the roll out of pilot projectsand charging infrastructure was reiterated. The industry representatives on their part, informed about their products andinitiatives taken to upgrade technology in the future. Shri Geete reiterated that “Keeping in view the limited domestic reserves of the conventional fuels and the rising demand inthe automobile sector, it is a dire necessity to find alternate sources of energy for transport which are ecofriendly yet costeffective. In the present circumstances, the Faster Adoption and Manufacturing of (hybrid &) Electric vehicles Scheme is anecessity. We hope that the scheme shall be a success and benefits the citizens of our country and meet the objectives whichare set out in the Mission. Today, the first national workshop organized by our Ministry also saw various stakeholdersincluding our partners from the State Govts participating with full fervor; we are hopeful that as one of importantstakeholders we will have their active participation in the implementation of the scheme as we go forward. I must say“Team India” will work for this nationally important scheme and make our country proud. Shri Geete also called upon both the industry and academia in the country to come forward and develop new and advancedelectric and hybrid vehicle models across all segments matching international standards, which are also cost effective. Hesaid that the involvement of state Govts. and local bodies will be crucial in the successful roll out of pilot projects and



public charging infrastructure for which the Central Govt. shall provide adequate funds in the initial years. He said Governments around the world are promoting these evolving alternate technology vehicles including countriessuch as USA, EU (including France, Germany, Norway, Sweden, The Netherlands), Japan and China. Across the globe, themajor focus is on market creation through various forms of incentives, particularly demand side incentives. The Minister also released a CD “Faster Adoption and Manufacturing of Hybrid and Electrical Vehicles”” brought outby the Department of Heavy Industries inaugurated a display of hybrid and electric vehicles in two, three and four wheelersegments being manufactured in India, which are eligible for coverage under the new scheme.

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