Localisation under FAME-II Scheme

The Inter-Ministerial Steering Committee of the National Mission for Transformative Mobility led by Niti Aayog chief executive officer Amitabh Kant has decided to incorporate localisation conditions to avail benefits under the FAME-II Scheme.
The Inter-Ministerial Committee of the National Mission For Transformative Mobility was formed following a cabinet decision to promote clean and sustainable mobility initiatives in the country. It consists of secretary of nine stakeholder ministries and director general of the Bureau of Indian Standards as its members.

Decision of the Inter-Ministerial Steering Committee

  • The steering committee has mandated that only companies that meet the 50% localisation threshold will be eligible for the incentives that will be available under the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME-II) scheme to boost electric mobility as well as the ‘Make in India’ initiative.
  • The decision has been taken to ensure that the tax payer’s money is not used to subsidise imports and encourage local manufacturing.

In the discussions held with the automotive manufacturers while the two-wheeler makers have expressed their inability in meeting the criteria for 50% localisation citing their limitations, the makers of electric buses have agreed to localise.

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