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PluginIndia Electric Vehicles

Government launches the FAME India scheme

10/4/2015

24 Comments

 
Bu Kamlesh Mallick
The Ministry of Heavy Industries and Public Enterprises has rolled out an Rs 800 crore scheme called - FAME India (Faster Adoption and Manufacturing of Electric Vehicles).
This translates to the following - subsidies for the consumer to make EV's financially attractive, help to the struggling EV manufacturers, assistance in technology development, encouraging more players to manufacture and sell EV's and support in installing charging infrastructure.

Here are the quick facts about the scheme
  • An approved outlay of Rs 795 crore ($125 million USD at current exchange rates) is allocated for the FAME scheme. Rs 260 crore will be spent in FY’16 and Rs 535 crore in FY’17.
  • The fund allocation for 2015-16 is distributed in the following manner. Rs 70 crore for the technology platform including testing infrastructure, Rs 155 crore for demand incentives, Rs 10 crore for charging infrastructure, Rs 20 crore for pilot projects, and Rs 5 crore for IEC operations.  More details on these are given below.
  • FAME India will be implemented over a 6-year period till 2020, where they will hope to sell 6-7 million xEVs annually.
  • Scheme is applicable to all major metro cities, all state capitals and other urban cities with 1 million population.
For the Consumers
  • Upto Rs 22,000 subsidy for electric scooters/e-bikes. 
    The tables below show how the subsidy amount will be decided based on the vehicle type, levels etc.
  • Upto Rs 29,000 subsidy for electric scooters/e-bikes.
    We have not seen an electric motorcycle product yet here in India, but this could tempt major players to enter the market.
  • Upto Rs 124,000 for sub meter 4 wheelers.
    The Mahindra e2o electric car should fall under this category
  • Upto Rs 138,000 for four-wheelers above 4 metres long
    Future electric sedans like the Mahindra Verito electric will fall under this category.
  • Vehicles under the scheme have been broadly categorised based on two types of battery technologies 
    ‘Conventional Battery’ and ‘Advance Battery’.
    ‘Conventional Battery’ represents the batteries with Lead as the principal chemical Element.
    ‘Advance Battery’ represents the new generation batteries without Lead such as Lithium polymer, Lithium Iron phosphate, Nickel Metal Hydride, Zinc Air, Sodium Air, Nickel Zinc, Lithium Air etc.
    The subsidy amounts are categorised based on the battery type and also if the vehicle is a hybrid or a pure electric or a level 1 or a level 2 type of vehicle.  Level 2 vehicles offer with higher fuel savings potential (for example - bikes with Lithium Ion battery tech will come into level 2 as they last longer and save more fuel)
Picture
Source - Department of Heavy Industry
Picture
  • These tables shows the subsidy amounts for hybrids, pure battery operated vehicles across various two and four wheeler levels.
  • Hybrid vehicles get less subsidy and pure battery operated vehicles with 0 local emissions to get more subsidy. 
    Exactly the way it needs to be.
  • Consumers can avail the discounted price immediately at the dealer level, as the government reimburses the auto companies every month.  This will also lead to faster adoption.

Photos of hybrid and pure electric vehicles displayed when the FAME announcement was made in Delhi

Where is the money going?
The four thrust areas of the scheme are: 
  • Demand and supply creation
    Demand creation basically ensures direct incentives to the consumer. On the supply side, they are going to provide money for technology development to component manufacturers. This will ensure local manufacturers develop components and thus the EV industry need not rely on imports.
  • Technology development
    There are multiple research groups, doing battery research, motor and controller research etc. A part of FAME will support these groups.
  • Charging infrastructure
    Private parties will be invited to setup charging points for EVs.  Money will go here to actually create electric highways and charging points in and around cities.
  • Pilot projects
    These are startup tester projects that will be initiated by the government or government agencies or private companies.  Some examples are - Cab Fleet companies, Short distance cargo haul, Public transport companies interested in hybrid and electric buses etc.
Photos - Mr Jaspreet Singh of MREV
What the industry is saying?
  • "FAME is a great imitative and glad to see it come through. It's going to give India the right impetus to go electric" - Mr Chetan Maini, Founder of Mahindra Reva Electric
  • "This a giant step toward cleaner mobility. This is a new generation technology, which India has started late and with this we are going to make a beginning." Vishnu Mathur, Director General, Society of Indian Automobile Manufacturers (SIAM) 
  • "This indicates the sort of confidence that the govt has in this sector and its willingness to do its part to kick-start it in India. Subsidy of 10-25K for e-bikes will go a long way in getting sensible and good electric vehicles on the road - ones which are not a compromise. Exciting times ahead." - Tarun Mehta, co-founder and CEO of Ather Energy
  • "We are thankful to the government in extending the benefit to EV’s. The scope is larger though still lacks execution clarity and streamline would take some time. Its a positive move but actual execution in terms of infrastructure would be the game changer for the industry.  Also the amount in terms of incentive is highly skewed towards 2 wheelers & Heavy Commercial vehicles" -  Anonymous electric vehicle manufacturer
  • "The whole program is very well planned and well thought out. The plans are tested every year before putting the money out for the next year.  This will ensure the money is well spent. Its a great way to start and will help them understand how the money needs to be spent and what areas they need to focus on." - Rajit Arya, CEO of Morello Yamasaki
  • "It’s is a very good initiative and the subsidies for the consumer is good. Now it is upto the OEMs to come up with good products and make use of these incentives in a productive manner which encourages people to go for an electric vehicle" - Priyank Dahanukar, CEO of Electric Vehicle India


Final Words
“Keeping in view the limited domestic reserves of conventional fuels and the rising demand in the automobile sector, it is a dire necessity to find alternate sources of energy for transport which are eco-friendly yet cost-effective. In the present circumstances, FAME is a necessity", said Mr Anant Geete, minister of Heavy Industries and Public Enterprises.
The minister called upon both the industry and academia in the country to come forward and develop new and advanced electric and hybrid vehicle models across all segments matching international standards which are also cost effective.

Now this is the kind of support we have always wanted form the government! 
We @ PluginIndia are very confident that investment will start pouring into the EV segment, consumers will have more choices in the coming years and we can hope to breathe clean air in our cities.

24 Comments
Sudarshan Gophane
10/4/2015 11:42:16 am

Exactly when we can expect subsidy of around 1.24L on E2O?

Reply
Kamlesh
10/4/2015 12:12:59 pm

From what i hear from the dealers and other sources, updated prices will be announced in a matter of days.

Reply
Ramesh Krishnan
10/4/2015 01:33:19 pm

I hope the Electric car companies mention the final price of E2O. Last time I heard it was around 5.5 Lakh. Which would mean now the car is 5.5 - 1.2 = 4.3 Lakh?

The cost of E20 now is approx 4 Lakhs? Or is the price lesser?

Most of the Chinese electric bikes cost around 30,000. Thus 9,500 discount on it would mean the cost of the bikes would be around 21,000?

Reply
Kamlesh
11/4/2015 04:09:52 am

Just got information from inside sources at Mahindra Reva.

The e2o prices will be announced in dealer today (Saturday - 4/11) and the prices will be updated on website on Monday (4/13)

Reply
Sudarshan
13/4/2015 03:07:45 am

Thanks Kamlesh, for your information and study on this. The prices are updated on website.

Reply
Johnson
15/4/2015 09:41:06 am

T2 model = Rs 4.79Lakh & T20 model = Rs 5.24 Lakh

http://mahindrareva.com/buy/price-list

I have always believed that Price is never the reason for poor sales of a car. If higher Price was a deterrent then Nano would have been the best selling car in the world.

Both Nano and E2O have been victims of poor marketing - one "catching fire" and the other "limited range". Many people think Electric cars are toys. These issues are still not properly addressed. Both these cars will sell badly unless they SMASH these myth.

Can the Mahindra people think of a race where the E2O beats Maruti Swift?... and give good publicity to it to rest the "range problem"? But the problem is that they cannot think of a Race where E2O can beat Swift...

Therein lies the problem!... of both Nano and E2O

... in fact there are a couple of Races where E2O can beat Swift!!!

Reply
Johnson
15/4/2015 11:25:25 am

Depending Govt. schemes to sell vehicles successfully is a very bad influence.

I remember visiting a relatives house... he had not painted his house for a few years and it looked very bad... I noticed his neighbor too had similar problem... and almost everybody in the building had this problem... when inquired I learnt that it was a government building and they were waiting for the govt painting department to paint the paint their house... their building was delayed probably by redtape. But there were a few who had themselves painted their house very nicely.

Electric Car companies will expect the Govt to give discounts and the people will expect next year to bring in more discounts from the govt.

The only thing in FAME that excites me is the "Rs 10 crore for charging infrastructure".... At least it will be an investment that can make the E2O and any other Electric Vehicles go from Kerala to Kashmir.



Reply
Liju Vaidhyan
18/4/2015 07:29:07 am

This one of the greatest step took by government
But I want to know how to approach to make this scheme applicable.
I want start my own electric company which will make motorbike. I have concept ready, paper works done. Just need to implement and set up a firm.
I am targeting on the major problems with electric vehicles.

Reply
Johnson
24/4/2015 06:23:02 am

There seems to be only 3 ways ahead. 1. Create a bike that works with your own money or your friends and then find Banks or Venture Capitalist or Angel Investors. If they see your vehicle can become popular they would love to invest their money to get profit. They have money ready to invest and are always looking for places to invest. But you will have to show them how it will make profit for them. 2. Make a bike that you will be able to use daily without requiring permit or licence. Bikes of 25kmph speed do not require any such thing and are considered as good as cycles. So the motor law does not require them. These will be bought by your friends if they find it useful. The look of the bike should be able to attract buyers. 3. Make a bike and use crowdfund to start it. You would also neeed a good powerpoint presentation and video to make it even stand out in the crowd. Then you will have to find ways to advertise the presentation/video. In all three scenarios you will need to develop the bike. To me the 1st option looks easier and the 3rd looks the most difficult as one not only has to develop the bike and the presentation/video but also device ways to market it and also pay from his pocket to advertise the clip and even then he has to wait and wait for the funding to come in.... which may not necessarily and could even take months and even years.

Reply
Johnson
19/4/2015 02:00:25 am

There seems to be only 3 ways ahead.

1. Create a bike that works with your own money or your friends and then find Banks or Venture Capitalist or Angel Investors. If they see your vehicle can become popular they would love to invest their money to get profit. They have money ready to invest and are always looking for places to invest. But you will have to show them how it will make profit for them.

2. Make a bike that you will be able to use daily without requiring permit or licence. Bikes of 25kmph speed do not require any such thing and are considered as good as cycles. So the motor law does not require them. These will be bought by your friends if they find it useful. The look of the bike should be able to attract buyers.

3. Make a bike and use crowdfund to start it. You would also neeed a good powerpoint presentation and video to make it even stand out in the crowd. Then you will have to find ways to advertise the presentation/video.

In all three scenarios you will need to develop the bike.

To me the 1st option looks easier and the 3rd looks the most difficult as one not only has to develop the bike and the presentation/video but also device ways to market it and also pay from his pocket to advertise the clip and even then he has to wait and wait for the funding to come in.... which may not necessarily and could even take months and even years.

Reply
Dhanesh
20/10/2017 06:29:21 am

I want to buy an Ampere electric scooter. The company says that subsidy amount is only Rs.7500.00 which I feel is very low.
Is there any Govt. Order (GO) which explains the subsidy scheme whereby I can get more information

Reply
Kamlesh
20/10/2017 10:05:11 am

Hi Dhanesh,

Here is the official page with amounts.

http://fame-india.gov.in/ModelUnderFame.aspx

Reply
ZOHAR S BATTERYWALA
7/11/2017 01:15:36 pm

Hi,
I want to purchase e-cycle(lightspeed dryft). Normally govt is giving subsidy of 10000 on escooters, so can I get that on ecycles.PLEASE
Zohar Batterywala
+918866612280
[email protected]

Reply
Muskan B Nagar
18/2/2018 02:00:58 pm

I want to buy a electricscoter so please give the option on it and other things like payment way please give argunt response

Reply
MITESH
13/3/2018 05:39:32 pm

HOW TO APPLY FOR SUBSIDY AS DEALER SAYS ITS INCLUDING SUBSIDY
HERO OPTIMA E2 57000/- DEALER IS SAYING ?

I JUST DONT WANT TO BE FOOL
SO SAFER SIDE HOW TO KNOW ? WHETHER IS INCLUDING SUBSIDY OR EXCLUDING /

Reply
RAVi SARAWGi
16/3/2018 12:57:24 pm

Please upload here updates about subsidy if any

Reply
Saiteja
16/3/2018 09:22:54 pm

Sir I need e bike controller we are starting a small e bike manufacturing unit my number 7729942441

Reply
Ranganathan
22/6/2018 09:33:34 pm

dear sir,
i want to purchase a electric scooter... i have few doubts... will u clear me on this...
does ex-showroom price includes/excludes subsidy?
what is the gst rate for ev scooter

can u give a sample breakup for ather s340 on road price

Reply
BALBIR
14/8/2018 07:11:43 pm

HOW I GET SUBSIDY ON HERO E SCOOTER LIKE OPTIMA PLUS

Reply
Chetan
27/8/2018 04:56:37 pm

Any subsidy on e-cycles?

Reply
sourav
3/10/2018 07:22:23 pm

please extend the time of subsidy for 5 and 6 days so i can buy electric vehicle

Reply
Roque S Fernandes
26/11/2018 10:29:12 am

Regarding government subsidy on e-bikes in Goa. Contact nos or email

Reply
Tarak
22/2/2021 12:35:15 am

21-02-2021stil FAME sceam it available in South India?
If yes give ME guidance plz I want to buy a even scooter

Reply
Sneha link
19/3/2021 10:33:53 am

Thanks for sharing

Reply

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