Context: The Parliamentary Standing Committee on Industry recommends extension of the deadline of the Faster Adoption & Manufacturing of Electric Vehicles/FAME India schemePhase II by  three more years.

• The deadline for the ongoing FAME India Phase II is March 31, 2024, with a budget outlay of Rs 10,000 crore.

Recommendations of Parliamentary Report On FAME India Scheme

• Holistic development of EV industry: Create a National policy on electric mobility, to enable a favorable environment for the EV industry and prevent policy uncertainty to promote a sustainable and clean transportation system in the country.
• Restore the subsidy on electric two-wheelers which was reduced to 15% from the original 40% . It is reported that reduction in subsidy since then has negatively impacted the sale of electric two- wheelers.
• Expand the targets: The government should consider increasing the number of EVs  in the four-wheelers category and include private electric four-wheelers in the domain of the FAME II Scheme, with a cap based on the cost and battery capacity of the vehicle.
• Focus on the whole EV manufacturing ecosystem by establishing dedicated manufacturing hubs and industrial parks for manufacturing of batteries, cells and EV auto components.
• Allocation of Funds: The committee recommended more funds be allocated to BHEL to facilitate popularizing EV mobility.

• Facilitating EV mobility: 
  • Public sector role:  PSU’s and government institutions should  participate in the installation of charging stations in their premises.
  • Incentivise the installation of charging stations to individual investors  to achieve the goal of setting up charging stations pan- India.
  • Women self-help groups and cooperative societies can assist in  opening and operating charging stations with an assured monetary incentive.

FAME INDIA Scheme PHASE- II

• About: The Faster Adoption and Manufacturing of (Hybrid & Electric Vehicles or FAME India Scheme is a part of the National Electric Mobility Mission Plan (NEMMP)
• Nodal Ministry: Ministry of Heavy industries and Public Enterprise.
• FAME India Scheme Features:
  • Electrification of public and shared transportation systems.
  • To incentivize the purchase of approximately 5 lakh three-wheelers, 7000 electric buses, and 35,000 four-wheelers
  • Plans to establish 2700 charging stations in metros, smart cities, and hilly states, with coverage on highways.

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News Source: Down to Earth