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1st October 2022 (7 Topics)

A digital platform for tracking PLI claims by Vehicle manufacturers under FAME Scheme


In a move to tighten the incentive disbursal system under the government’s flagship incentive schemes for electric vehicles, the Heavy Industries Ministry is moving from a paper-based subsidy claims mechanism to a new digital platform.


About the Initiative

  • The Heavy Industries Ministry has decided to move from a paper-based subsidy claims mechanism to a new digital platform.
  • The digital platform will track the value addition achieved by a vehicle manufacturer using domestically produced inputs from equipment manufacturers.
  • Under this new platform, an IT-enabled system based on Application Programming Interface or API, would be leveraged to ensure that data pertaining to the net value addition achieved during the manufacturing process.
  • The data will automatically feed into the Ministry’s portal from the vehicle manufacturers’ enterprise resource planning (ERP)
  • This enables traceability of equipment and inputs with their complete digital footprint.

ERP is application software that organisations use to manage business activities.

What is the current process for availing Subsidies?

  • Currently, companies file their application in the physical format to claim incentives under the Faster Adoption and Manufacturing of Electric and Hybrid Vehicles in India (FAME) scheme and other flagship schemes such as the Productivity-Linked Incentive (PLI).
  • This (digital system) will not just bring in transparency but also is the next level in ease of doing business and will save a lot of hassle for companies that have to file it in physical form as on date.

Significance of the Initiative

  • Easy to track claims: This is significant since the government’s revenue intelligence agency had flagged a discrepancy in the process related to claims made by some two-wheeler manufacturers who allegedly violated localisation norms while availing of subsidies under the electric vehicle promotion scheme.
  • Better management: The vehicle manufacturers will be benefitted as they can manage their subsidies/ PLIs online.

FAME India Scheme:

  • Fame India scheme is an incentive scheme that encourages the adoption of electric and hybrid vehicles. The full form of Fame India scheme is “Faster Adoption and Manufacturing of Electric and Hybrid Vehicles in India”.
  • FAME India is a part of the National Electric Mobility Mission Plan.
  • The FAME India Scheme is aimed at incentivising all vehicle segments.
  • Phases of the scheme:
  • Phase I: started in 2015 and was completed on 31st March, 2019
  • Phase II: started from April, 2019, will be completed by 31st March, 2022
  • The scheme covers Hybrid & Electric technologies like Mild Hybrid, Strong Hybrid, Plug in Hybrid & Battery Electric Vehicles.
  • Monitoring Authority: Department of Heavy Industries, the Ministry of Heavy Industries and Public Enterprises.
  • Fame India Scheme has four focus Areas:
    • Technology development
    • Demand Creation
    • Pilot Projects
    • Charging Infrastructure

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