September 9, 2019 / by Indrajeet / In Self Driven Bike / 0 Comments

How the FAME initiative is helping e-vehicle Startups

Electric car and bike rental adoption is booming in India nowadays and has great potential to expand. Government policy plays an important role in helping such businesses grow and sustain. It also benefits the start-ups who provide self driven electric bike and electric car rental services.

The Government of India has launched FAME (Faster Adoption and Manufacturing of Hybrid & Electric Vehicles in India) to promote the manufacturing of electric vehicles in the country.

Let’s understand what the Fame initiative all about is in more detail:

FAME Initiative: Launched by the ministry of heavy industries, this scheme aims to incentivize production and promotion of hybrid and electric vehicles. The incentives can be given in the form of subsidy to the manufacturers and vehicle charging station owners. FAME was launched under the national electric mobility mission plan which targets promote electric vehicles and achieve sales of around 7 million units year on year starting from 2020.

This scheme was launched in Phase 1 and Phase 2. Let’s have a look at the details about each phase:

FAME scheme Phase 1:

• This was launched on 1st April 2015 and was later extended until 31st March 2019.
• The primary focus of the program was to reduce the carbon emission from the vehicles and achieve national fuel security.
• Under this program, more than 200 thousand electric vehicles were promoted.
• The government also looked on reducing the use of conventional vehicles, thus making electric vehicles anyone’s first choice.

FAME scheme Phase 2:

• Phase 2 of Fame was launched on 1st April 2019.
• This phase is mostly focused on providing the infrastructure for electric vehicles
• Government has come up with plans to provide subsidy two individuals are company wish to establish charging stations for these vehicles
• The recent budget announced also contains a reduced GST from 12% earlier to 5%.
• Buyers can also avail tax benefit up to 2.5 lacs based on their tax bracket.

The FAME initiative will be helpful for businesses which use self driven electric cars or bike. The subsidy and incentive policy gives a boost for such start-ups to provide low cost electric car/bike rentals as compared to the conventional vehicles. The waiver in taxes brings down the manufacturing cost and widens the market share of electric vehicles.