FAME (Faster Adoption of Electric Vehicles)

FAME, Faster Adoption and Manufacturing of Hybrid and Electric Vehicles, is the Government of India's flagship electric vehicle promotion scheme, administered by the Department of Heavy Industries (DHI) under the Ministry of Heavy Industries. Launched as FAME India Phase 1 in 2015 and significantly expanded as FAME II (2019-2024) with a total outlay of Rs 11,500 crore, the scheme supports EV demand through purchase subsidies to buyers, and supply through capital grants for charging infrastructure. FAME II was succeeded by PM E-DRIVE (Electric Drive Revolution in Innovative Vehicle Enhancement) in late 2024, which continues many of FAME II's objectives with a revised structure. From a procurement standpoint, FAME II and its successor generate tender opportunities in two main areas: electric vehicle procurement by government fleet operators, and public charging infrastructure deployment.

What is FAME in government procurement?

For government fleet electrification, FAME II incentivised central and state government organisations to replace conventional vehicles with electric ones. This generated large procurement events: CESL (Convergence Energy Services Limited, a government enterprise under EESL) aggregated demand from government departments and PSUs to bulk-procure electric buses, electric four-wheelers, and electric two-wheelers at scale. CESL's procurement model uses demand aggregation, pooling requirements from multiple buyers, to achieve volumes large enough to negotiate manufacturer prices far below retail. The tenders are typically published on GeM or CPPP and follow GFR 2017. Electric bus procurement for state transport undertakings (SSTUs) became one of the largest FAME-linked procurement categories, with individual state bus fleet tenders worth Rs 500 crore to Rs 3,000 crore.

For charging infrastructure, FAME II sanctioned public charging stations across expressways, city roads, and public facilities. Tenders for EV charger supply and installation are floated by government agencies including NTPC, PGCIL, CPSEs, state power utilities, and NHAI (for expressway charging stations). The specification of chargers (AC Type 2, DC CCS2, CHAdeMO, Bharat AC001, Bharat DC001) and the installation location type (highway, city, parking facility) determine the technical eligibility requirements. Private companies, EV charger manufacturers, system integrators, and O&M service providers, compete in these tenders.

Why it matters for bidders

For EV manufacturers and bus body builders, FAME-linked government procurement is the primary near-term revenue driver in India's EV market. Winning a government bus fleet order validates the product at scale and provides working capital through milestone payments, crucial for manufacturers still building manufacturing volume. The eligibility requirements for bus tenders typically include minimum range per charge (150-200 km), fire safety certifications, and AIS 148 compliance (India's specific EV safety standard).

For charging infrastructure companies, the government-funded segment is high-volume but lower-margin than the retail segment. Winning government charger installation tenders requires NABL-accredited charger testing, BIS compliance for charger equipment, and capability to manage projects across multiple sites simultaneously. O&M contracts for existing charging stations are a growing segment as early FAME II installations come due for maintenance contracts.

Importers of EV components should note that FAME subsidy eligibility requires minimum domestic value addition, batteries and cells assembled in India with specified local content are required to qualify the vehicle for the demand subsidy. This has driven significant domestic battery assembly investment and creates a preference for suppliers with India manufacturing.

Example

A state electricity board issues a tender under PM E-DRIVE for installation of 200 DC fast chargers (50 kW each) at government buildings and public parking facilities across 10 districts. The NIT specifies AIS 148-compliant chargers, Bharat DC001 connector compatibility, 5-year O&M included, and remote monitoring via OCPP 1.6 protocol. The bidder must have installed at least 50 EV chargers in the past two years. A system integrator with 120 prior installations across three states wins the tender as L1, delivering and commissioning all 200 chargers over 18 months.

Key rules / thresholds

• FAME II phase closed in 2024; PM E-DRIVE succeeds it with a Rs 10,900 crore outlay covering 2024-2026.
• EV demand subsidy eligibility requires compliance with AIS 148 (vehicle safety) and minimum domestic value addition in battery.
• Public charger procurement: standard specifications are Bharat AC001 (15A, 3.3 kW) and Bharat DC001 (15 kW) for India-specific standards; CCS2 and CHAdeMO for international compatibility.
• CESL's bulk procurement model allows individual government departments to join a running tender rather than floating separate tenders, check CESL's active consolidated tenders before issuing a new NIT.