Key features and components of the FAME scheme include:

• Incentives for Electric Vehicles (EVs): The FAME scheme provides financial incentives to buyers of electric vehicles to make them more affordable. This includes incentives for electric two-wheelers, three-wheelers, four-wheelers, and electric buses.
• Charging Infrastructure: The scheme aims to develop the necessary infrastructure for electric vehicle charging. This includes setting up public charging stations to encourage the adoption of electric vehicles.
• Research and Development (R&D): FAME supports research and development activities in the field of electric and hybrid vehicle technology. This includes investments in technology development, innovation, and skill enhancement.
• Incentives for Manufacturers: In addition to incentives for buyers, the FAME scheme provides support to manufacturers and suppliers of electric and hybrid vehicle components. This is aimed at boosting the manufacturing ecosystem for electric vehicles in India.
• Focus on Public Transportation: FAME emphasizes promoting electric mobility in public transportation, including electric buses and e-rickshaws. This is seen as a way to address environmental concerns and reduce dependence on traditional fossil fuel-powered vehicles.
• Scope Expansion: Over the years, the scope of the FAME scheme has expanded to cover a broader range of electric and hybrid vehicles, including those used for commercial purposes.

Phases of the FAME Scheme: 

Phase I :  The first phase of the FAME 1 India Scheme began in 2015 and ran through March 31, 2019. It provided purchase incentives to all EV categories, including electric two-wheelers (e-2W), electric three-wheelers (e-3W), personal electric four-wheelers (e-4W), light commercial vehicles (LCV), and electric buses (e-buses).

The policy aimed at encouraging sustainable mobility and allotted INR 795 crore towards demand creation incentives, technology platforms, pilot projects, and charging infrastructure.

Phase II:  ​​​​​​​​​​​​​​The second phase, FAME 2, is a 3-year subsidy program that began in April 2019 and was initially set to end in March 2022, now March 2024. It aims at supporting the electrification of public and shared transportation, including around 7,000 electric and hybrid buses, 500,000 electric three-wheelers, 55,000 electric four-wheeler passenger cars, and 1 million electric two-wheelers.

​​​​​​​​The program also finances charging infrastructures, and until July 2022, a total of 532 charging stations had been installed.  The Parliamentary Standing Committee on Industry has recommended extending the government's subsidy for electric vehicles (EVs) beyond the March 2024 deadline for the FAME 2 scheme.

FAME 3

The third edition of the electric vehicle incentive scheme FAME (Faster Adoption and Manufacturing of Electric Vehicles) with an outlay of about Rs 10,000 crore is likely to be rolled out within the first 100 days of the new government taking charge. The scheme will offer financial incentives to electric two-wheelers and three-wheelers as well as government-owned buses.