Indian Cities To Buy More Electrical Buses – FAME 2 Scheme

Technology is changing at exponential speed in this era. Thus the need to switch for better alternatives has always been a driving factor. New invention and modification have become inevitable in the current scenario. With this motto, India has taken the initiative towards electrifying the vehicles through the introduction of the FAME 2 Scheme.

What exactly is the FAME 2 Scheme?

FAME 2 Scheme or the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles is one such initiative taken to boost electric mobility and to promote eco-friendly vehicles in the country. It is an expanded phase of the FAME 1 Scheme which was launched on 1st April 2015. The objective of the FAME 1 Scheme was to lower the excessive emissions and to reduce the greenhouse effect created by the toxic gases.

Aims of the FAME 2:

  • To reduce the usage of depleting fossil fuels and focus on a more sustainable standard of living. The Scheme will be implemented for three years with effect from 1st April 2019.
  • To promote the use of electric vehicles by providing incentives on purchase. It also includes the Plug-in hybrid vehicles and those with a sizeable lithium-ion battery.

How will FAME 2 Scheme help in the Growth of Infrastructure?

The total outlay of the Scheme is 10,000 crores. This will help to boost the growth of charging infrastructure by the installation of charging stations with the mutual role of the public and private sector.

The government grants attractive offers to those manufacturers who invest in developing electric buses, three-wheelers and four-wheelers. It also covers manufactures of components, including lithium-ion batteries and electric motors to be used for commercial purposes. Apart from this, public transportation also comes under its domain in the field of electrifying the transports.

Many cities of India have even advanced to make this Scheme a success from ground level. The result of which is the arrival of 375 electric buses into public transport fleet in Delhi by the end of this year. The city of dreams, Mumbai, already operates six electric buses proudly and has planned to procure above 500 buses over the next year.

Other prominent cities like Bengaluru have also declared their plans to convert its entire fleet of public transport buses to electric by 2030.


There are some complications for the smooth functioning of this Scheme. Let us look into some of them:

The electric two-wheelers use low power and fast charging batteries due to which incentives decline. It will demotivate not only the manufacturers but also the final users.

The government’s decision of exclusion of the private sector in areas of incentives has aggravated the concerns of many leading companies. Maruti Suzuki, Mahindra & Mahindra, Tata Motors and others are ready with their hybrid cars and electric vehicles to be launched.

The process of safety tests, vehicle testing, proper and accessible charging stations are to be conducted before they make a grasp over the market.

The FAME 2 Scheme is a significant milestone in the technology sector. It will provide a new dimension to the economy concerning employment and GDP. The operations of the FAME 2 Scheme are going in full swing and seek a positive response from the customers as well as manufacturers.


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