A Sustainable Asset Valuation of the FAME II policy in India

This Sustainable Asset Valuation (SAVi) analyzes the economic, social, and environmental impacts of the second phase of the Faster Adoption and Manufacturing of Electric (& Hybrid) Vehicles (FAME II) policy in India, which utilizes a budget of INR 100 billion to subsidize the electrification of public and shared transportation.

• The FAME II policy is a funding scheme developed by the Indian National Automotive Board (NAB) to create demand for electric vehicles (EVs). It specifically targets the electrification of public and shared transportation through subsidies provided by the National Government of India to urban authorities over a 5-year period, with a total budget of INR 100 billion (USD 1.2 billion).
• The SAVi assessment evaluates the FAME II policy across different scenarios based on the allocation of the subsidy budget and the split of EV costs between government subsidies and consumer contributions. The analysis considers investment costs, including capital and operation and maintenance costs, alongside added environmental, social, and economic benefits.
• Results indicate that the FAME II policy stimulates economic growth and provides significant social and environmental benefits. These include the creation of employment and the avoidance of costs associated with fuel use, internal combustion engine vehicles, carbon dioxide emissions, and air pollution.
• The analysis emphasizes the necessity of balancing the level of government subsidy to maximize the number of subsidized electric vehicles while maintaining sufficient incentives for the private sector and households to purchase them.

APA

Bassi,, M. K. (2024). A Sustainable Asset Valuation of the FAME II policy in India. International Institute for Sustainable Development. https://www.iisd.org/publications/report/savi-electric-vehicles-india-fame-policy

Chicago

Bassi,, Michail Kapetanakis,Andrea. A Sustainable Asset Valuation of the FAME II policy in India. International Institute for Sustainable Development, 2024. https://www.iisd.org/publications/report/savi-electric-vehicles-india-fame-policy.

Wikipedia

{{cite report |last1=Bassi, |first1=Michail Kapetanakis,Andrea |title=A Sustainable Asset Valuation of the FAME II policy in India |publisher=International Institute for Sustainable Development |date=20 February 2024 |url=https://www.iisd.org/publications/report/savi-electric-vehicles-india-fame-policy |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{bassi2024sustainable, author = {Bassi,, Michail Kapetanakis,Andrea}, title = {{A Sustainable Asset Valuation of the FAME II policy in India}}, institution = {International Institute for Sustainable Development}, year = {2024}, month = feb, url = {https://www.iisd.org/publications/report/savi-electric-vehicles-india-fame-policy}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }