On-demand incentives of 2.54 billion yen provided to deploy 85,626 electric vehicles


Union Minister Krishan Pal Gurjar, responding to a question in the Lok Sabha, said the government has supported the deployment of 85,626 electric vehicles (EVs) through demand incentives totaling 2.54 billion yen (~ $ 34.04 million) as part of the second phase of Faster Adoption. and the Hybrid and Electric Vehicle Manufacturing Program in India (FAME) starting July 15, 2021.

The Ministry of Heavy Industries formulated the FAME India program in 2015 as part of the National Electric Mobility Mission Plan 2020.

Phase I of the FAME program

Regarding funds earmarked and used under the program, Gurjar said the ministry had budgeted 8.95 billion yen (~ $ 119.96 million) for the first phase of the plan, which was available until March 31, 2019. Of this amount, a total fund of 8.56 billion yen (~ $ 114.72 million) is used as of June 30, 2021. In the first phase of the program, incentives of 3, 59 billion yen (~ $ 48.11 million) was provided for 280,000 electric vehicles. In addition, 425 electric buses have been deployed to various cities under the program.

The minister said an independent consultant has evaluated the first phase of the program. According to the results, key fuel economy and carbon dioxide reduction metrics were significantly below FAME’s target, although the program increased awareness of electric vehicles. The consultant also suggested revising the subsidy structure based on powertrain technology (to encourage cleaner technologies) and establishing parity between technologies.

The Minister also informed Lok Sabha that the government had consulted all stakeholders, including industry and industry associations, prior to the formulation of Phase II of the FAME India program.


The government has allocated 100 billion yen (~ $ 1.34 billion) for phase II of FAME India. The second phase would mainly support the electrification of public transport and the creation of charging infrastructure. In addition, the government will support 7,090 electric buses, 1 million electric two-wheelers (E-2W), 500,000 electric three-wheelers (E-3W), 55,000 electric passenger cars.

Regarding sales of electric vehicles and hybrid vehicles, Gurjar said the ministry has supported 85,626 electric vehicles through demand-side incentives totaling 2.54 billion yen (approximately $ 34.04 million) in under the second phase of FAME India as of July 15, 2021. In addition, the ministry also approved 6,256 electric buses to several state / urban transport companies under the program. Under FAME II, the ministry also approved 2,877 electric vehicle charging stations worth 5 billion yen (approximately $ 67 million) in 68 cities in 25 states.

In September 2020, Minister of Heavy Industries and State-owned Enterprises Prakash Javadekar told Lok Sabha that the government had provided a demand incentive of 950 million yen (~ $ 12.9 million) for 27,201 electric vehicles up to ” until September 10, 2020.

Mercom previously reported that the Heavy Industries Ministry approved 2,636 electric vehicle charging stations in 62 cities in 24 states and Union territories as part of the second phase of the FAME India program.

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