The government has extended the validity of the second phase of the Faster Adoption and Manufacturing of Electric Vehicles (FAME)-II program for all approved electric vehicle (EV) models.

The validity has been extended for two years up to March 31, 2024, according to the latest gazette notification issued by the Ministry of Heavy Industries and Public Enterprises, Department of Heavy Industry (DHI). Last year, the program received a validity extension until December 31, 2020.

The program is the expanded version of FAME India I, launched on April 1, 2015, with a total outlay of ₹8.95 billion (~$126.2 million). The initiative was successful in increasing the share of hybrid and passenger EVs from zero in the financial year (FY) 2012-13 to 1.3% in the FY 2015-16.

FAME India is part of the National Electricity Mobility Mission Plan. The government launched the FAME program to push for early adoption and market creation for both hybrids and EVs. The FAME program covers all vehicle categories – two-wheelers, three-wheelers, four-wheelers, and even buses. The incentives to be provided are based on the type and make of any given vehicle.

In March 2019, the Union Cabinet approved the proposal to implement the second phase of the program to promote electric mobility in the country. With a total budget of ₹100 billion (~$1.41 billion), the program was expected to be deployed over three years, with effect from April 1, 2019.

The EV industry sold 156,000 electric vehicles in FY 2019-20. According to the Society of Manufacturers of Electric Vehicles (SMEV), the sale of electric vehicles in India increased by 20% in 2019-20, mainly driven by rising sales of two-wheelers.

However, in the FY 2020-21, 236,802 EVs were sold in India, with sales registering a 20% drop compared to the figures reported during the same period the year before.

Meanwhile, the DHI had also announced partial amendments to the FAME-II program. Specific demand incentive for electric two-wheelers of ₹15,000 (~$205)/kWh has now been announced. Earlier, there was a uniform demand incentive of ₹1,0000 (~$137)/kWh for all vehicles. Also, the cap on incentive for electric two-wheelers has been raised to 40% of the total cost of the vehicles. The cap earlier was 20% for all vehicles, including electric two-wheelers.