Key Takeaways ✨
The future of mobility is electric, and India is accelerating that shift with the help of one of its most important initiatives: the FAME India Scheme. If you’ve been hearing the term “FAME” a lot and wondering what it actually means or how it impacts the EV ecosystem, this guide is for you.
Whether you’re planning to start an electric vehicle business, install charging stations, or simply want to understand how the government supports EV adoption, this detailed breakdown will help. We’ll explore the scheme’s objectives, who it benefits, how to apply, and what the future holds.
Let’s start with the basics.
What is the FAME India Scheme?
FAME stands for Faster Adoption and Manufacturing of Hybrid and Electric Vehicles. It’s a government program launched by the Ministry of Heavy Industries in 2015. The primary aim is to promote the adoption of electric and hybrid vehicles in India by offering financial incentives, improving charging infrastructure, and encouraging local manufacturing.
This scheme is part of a larger vision laid out under the National Electric Mobility Mission Plan (NEMMP).
Why Was the FAME Scheme Introduced?
India has several challenges when it comes to transport:
- High dependence on imported crude oil
- Growing air pollution in urban areas
- Rising carbon emissions from the transport sector
- Increasing demand for sustainable public transport
To address these issues, FAME aims to push both the supply and demand sides of the EV ecosystem.
Phases of the FAME India Scheme
Phase I (2015 – 2019)
- Total outlay: Rs. 895 crore
- Focused on pilot projects
- Targeted electric 2-wheelers, 3-wheelers, 4-wheelers, and buses
- Supported 2.8 lakh vehicles
- Laid the groundwork for infrastructure and policy-making
Phase II (2019 – March 2024)
- Outlay: Rs. 10,000 crore
- Focus: Scaling adoption for commercial use, charging infrastructure, and electric buses
- Supports:
- 7,000 electric buses
- 5 lakh electric 3-wheelers
- 55,000 electric 4-wheelers
- 10 lakh electric 2-wheelers
FAME II is a much broader and impact-driven policy that directly helps buyers, OEMs, fleet operators, and cities planning clean public transport.
Key Objectives of the FAME Scheme
- Reduce air pollution in metro cities
- Promote energy security by cutting fuel imports
- Develop indigenous EV technology and components
- Create jobs in battery tech, motor manufacturing, EV design, and software
- Encourage last-mile delivery electrification
- Support public transport electrification
Components of the FAME Scheme
FAME has two main verticals:
1. Demand Incentive
Subsidy offered to buyers of eligible EV models. The incentive amount depends on:
- Type of vehicle (2W, 3W, 4W, Bus)
- Battery capacity (₹10,000 to ₹20,000 per kWh)
- Vehicle usage (personal vs. commercial)
2. Charging Infrastructure
- Financial support for setting up public charging stations
- Cities and highways prioritised
- DISCOMs and private players can apply for incentives
Vehicles Covered Under FAME II
Two-Wheelers:
- Must have a minimum top speed of 40 kmph
- Range of 80 km per charge
- Subsidy of ₹15,000 per kWh (with a cap of 40% of vehicle cost)
Three-Wheelers:
- Used in delivery or passenger services
- Approved models get up to ₹50,000 in subsidy
Four-Wheelers:
- Only commercial vehicles (e.g., fleet taxis, shared mobility)
- Max subsidy of ₹1.5 lakh per car
Buses:
- 7,000 e-buses supported under FAME II
- Cities selected through competitive bidding
Eligibility Criteria for OEMs and Products
To receive subsidies under FAME, your EV must:
- Be manufactured in India
- Meet performance and efficiency benchmarks
- Be approved by a certified testing agency (e.g., ARAI or ICAT)
Eligible Manufacturers:
Some popular brands whose models are approved:
- Ather Energy
- Ola Electric
- Hero Electric
- Okinawa
- TVS Motor
- Tata Motors
- Mahindra Electric
- Ashok Leyland (for buses)
How to Apply for FAME II Incentives
For EV Manufacturers (OEMs):
- Register on the FAME Portal
- Submit EV Model for Approval
- ARAI/ICAT testing
- Vehicle performance details (range, speed, battery capacity)
- Approval and Listing
- Once approved, your model is listed for incentives
- Invoice-linked Claims
- You submit sales data to claim incentives for each unit sold
For EV Buyers:
If you are buying an electric vehicle (2W or 3W), your dealer will offer the FAME discount upfront. You don’t need to apply separately.
For Charging Infrastructure Players:
- Submit Expression of Interest (EOI) via the Ministry of Power or DISCOMs
- Mention land availability, project layout, location
- Selected projects get support for capital expenditure
Impact of FAME II So Far
- Over 11 lakh EVs supported as of early 2024
- 6000+ charging stations approved under the plan
- Boost to Indian manufacturing in motors, batteries, chargers
- Helped reduce 63 crore liters of fuel and 11 lakh tonnes of CO2
State-Level Synergy with FAME
Many states have integrated their EV policies with the FAME framework to increase benefits.
Delhi
- Additional subsidy of ₹5,000 per kWh for two-wheelers
- Road tax and registration fee waiver
Maharashtra
- ₹10,000 per EV as early bird incentive
- Fleet and logistics subsidies
Tamil Nadu
- EV industrial parks, charging station support
- 100% road tax exemption
Gujarat and Karnataka
- Capital subsidy for EV startups
- Waiver on stamp duty and electricity duty
Business Opportunities Created by FAME
1. Electric Two-Wheeler Dealership
Start your own dealership selling FAME-approved scooters and bikes.
2. EV Leasing and Finance
Provide EVs to gig workers, fleet operators, and college students on subscription models.
3. Public Charging Station Setup
Use the capital support to install chargers in malls, parking lots, petrol bunks.
4. Battery Swapping
Develop fast battery swapping solutions for delivery fleets and auto rickshaws.
5. EV Aggregator Platforms
Build platforms that manage e-bikes, taxis, or cargo delivery vehicles with real-time data.
6. EV Manufacturing or Assembly
Take advantage of the Make in India push and start small-scale EV component manufacturing.
Challenges Faced Under FAME Implementation
- Delay in subsidy disbursements
- Limited awareness among consumers and small dealers
- Difficult approval process for small OEMs
- Inconsistent standards across states
- Urban-rural gap in infrastructure availability
What’s Next After FAME II? (Expected Roadmap)
FAME III (To be announced)
The government is preparing to roll out the next version of the scheme:
- More focus on private EV adoption
- Dedicated support for e-tractors and small commercial EVs
- Greater incentives for Tier 2 and Tier 3 cities
- Integration with smart mobility and digital platforms
Government Contacts and Helpdesk
- Official Website: https://fame2.heavyindustries.gov.in/
- Ministry of Heavy Industries: https://heavyindustries.gov.in
- Startup India EV Category: https://www.startupindia.gov.in
For queries:
- Email: fame-india[at]gov[dot]in
- Helpline: 011-23062795
Final Thoughts
The FAME India scheme is not just a subsidy program. It is the backbone of India’s electric mobility movement. It benefits consumers, manufacturers, infrastructure players, and even state governments. Whether you’re an individual EV buyer, an OEM, a charging provider, or a budding entrepreneur, this scheme gives you the chance to join India’s green journey.
Now is the time to act. With support from FAME, you can save money, build a business, and make a real impact. All you need is a little planning, compliance with eligibility rules, and a clear understanding of how the process works.
If you’re planning to ride the EV wave, let FAME be your launchpad.
