Home / Home / Cabinet clears FAME II Scheme for EV Push


Volvo XC90 T8 Hybrid Electric Vehicle FAME II

The Union Cabinet has cleared the long-awaited Faster Adoption and Manufacturing of Electric Vehicles or FAME II scheme, which sees an allocation of Rs 10,000 crore over the next three years.

Under the FAME II scheme, which will be implemented from 1 April this year, electrification will receive a major impetus with an purchase of electric vehicles getting an incentive. Hybrid vehicles with lithium batteries will also benefit. The scheme excludes benefits to more traditional lead-acid batteries and the like, with a view to promote more modern electrification technologies. The major beneficiaries will be commercial three- and four-wheeler vehicles as well as private two-wheelers.

An improved charging infrastructure is also on the cards. The target is to have a charging station every three square kilometres and, on national highways, one station every 25 km on either side of the highway. Last-mile connectivity will also see progress with a focus on electrifying public transport. The numbers stated include 10 lakh electric two-wheelers, 5 lakh electric three-wheelers, 55,000 electric four wheelers and 7,000 buses within these regulations.

Sohinder Gill, Director General, Society of Manufacturers of Electric Vehicles (SMEV), said, “We are thankful to the government for considering our demand for a long-term scheme with substantial fund support. The support would encourage associated industry players to invest in the sector, which will further help in creating an ecosystem, locally. We look forward to seeing the final notification from the concerned ministry, which will give us clarity on the government’s roadmap of e-mobility.”

Dr. Pawan Goenka, MD, M&M Ltd, said, “We applaud the approval of FAME II scheme by the Union Cabinet. The new outlay of Rs 10,000 crore over a period of three years provides a stable policy to promote green mobility in India. It addresses the key issues including National Energy Security, Mitigation of the adverse impact of vehicles on the environment and Growth of domestic technology and manufacturing capabilities. The revised FAME II removes all the uncertainty and will put Electric Vehicles in the fast lane. Mahindra supports the Central Government’s focus to boost EVs in public transportation and now requests local authorities to help facilitate plying of electric vehicles on Indian roads.

“Government support with the FAME II scheme is holistic and includes focus on charging Infrastructure with a clear emphasis on ‘Make-in-India’. We feel that it is now the responsibility of suppliers, OEMs and mobility service providers to invest in EVs and make India’s EV dream become a reality”, Dr. Goenka added.

The influx of electric vehicles over the next couple of years will see the likes of many entry-level cars, mid-size luxury cars as well as performance electric cars coming in. These include the Mahindra e2O Plus and e-Verito, a new EV line from Maruti Suzuki, the Audi e-tron, the Mercedes-Benz EQC, and even the Tesla Model 3 and Porsche Taycan.

BMW i3s  Electric Vehicle FAME II

BMW i3s

Audi e-tron Electric Vehicle FAME II

Audi e-tron quattro

Porsche Taycan Electric Vehicle FAME II

Porsche Taycan


About the author: Jim Gorde


Deputy Editor at Car India and Bike India.
Believes that learning never stops, and that diesel plug-in hybrids are the only feasible immediate future until hydrogen FCEVs take over.

t: @CarIndia/@BikeIndia
IG: @carindia_mag/@bikeindia/@jimbosez


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