OEM Registration process for FAME subsidies

It is evident that pollution is causing irreparable harm to the environment. One major factor contributing to pollution is transportation, as this is entirely dependent on Non-Renewable energy sources. India has realized this problem and has introduced great plans to increase the usage of Electric Vehicles (EV). The plan is to Encourage the manufacturing and use of EVs, Establish the required Infrastructure and Educate the citizens. All this is to be achieved by the FAME ( faster adoption and manufacturing of electric and hybrid vehicles) scheme in India. 

FAME is an incentive scheme for adoption and manufacturing of electric and hybrid vehicles in India. Electric vehicle manufacturers and infrastructure providers receive subsidies as part of this incentive. The Ministry of Heavy Industries and Public Enterprises announced the Fame India scheme as part of the National Electric Mobility Mission Plan.

The FAME Scheme is to be implemented in two phases

1. Phase-1 started in 2015 and was functional till 31st March 2019. 
2. Phase-2 started in April 2019 and was supposed to continue till 31st March 2022. 

But the Government has recently extended this program till 31st march 2024 

Now that we Know EVs are the future of transportation and the government is already taking required steps to encourage it. The Indian automotive industry is growing rapidly and domestic original equipment manufacturers(OEM) are shining like stars globally with cutting edge technology and aggressive growth plan. All this has been made possible because of the various subsides available to the OEMs through FAME scheme. OEMs can claim demand Incentive under FAME-II.

Categories of vehicles that can claim demand incentives are

1. Buses (Only Electric Buses) (e-Bus);
2. Four Wheelers (Electric, Plug in Hybrid and Strong Hybrid (e-4W);
3. Three Wheelers (Electric)- e-3 including Registered E-Rickshaws/e-Carts;
4. Two wheelers (Electric) - e-2W.

Procedure to register OEMs for demand incentive

1. Under this scheme, an OEM (Original Equipment Manufacturer) is defined as a sole proprietor, a private/public company, or a partnership firm that manufactures any of the vehicles covered by Phase II of the FAME-India scheme and has achieved a certain percentage of localisation declared separately.
2. For benefits under this scheme each OEM shall apply for registration to department of heavy industry( national automotive board) in prescribe manner mentioned in Annexure-A.
3. Documents required at the time of Registration:
4. Application for manufacture registration as per Annexure-A
5. Company registration Certificate.
6. Trade License
7. GST Registration Certificate
8. PAN Card
9. Testing/Homologation Certificate complying with FAME-If eligibility criteria issued by designated testing agency under rule 126 of CMVR, 1989, including quality certificate, technical parameters or any other parameter issued under FAME-India Guidelines VII
10. Pre-registration of xEV model as per Annexure-B
11. Complete set of MOA & Rules of OEM
12. List of at least 25 vehicle dealers and service centres along with their searchable addresses / locations and contact number to be situated at least in two states
13. Photographs of the type approved Vehicle

OEM is required to submit the hard copy of the application and all the required documents at the below address:  

Shri Anand Kumar Singh,
Director(auto),
Room No. 275-E, Udyog Bhawan,
New-Delhi: 110011  

Find the Annexure-A below

Annexure-A

To,

The director,
Department of heavy industry,
Ministry of heavy industry and public enterprises,
Udyog bhavan,
New Delhi- 110011.

Subject: application for manufacturer registration under the FAME-India scheme.

Dear Sir,

We, ------------------------(Name of Manufacturer) are Original Equipment Manufacturer(OEM) intend to manufacture xEV and wish to avail the benefits offered under FAME India Scheme Phase-II, as notified vide Gazette Notification S.O. No 1300 (E) dated 8th March 2019 and are willing to avail incentives under this scheme.

We, therefore, apply for formal registration with DH1 for the scheme namely FAME-India scheme Phase II.

We Furnish requisite information/documents.

A. Manufacturer Information

B. Declaration & Undertaking

We declare that information provided here-in-above are correct and true to the best of our Knowledge and also we undertake to abide by all terms and conditions of the scheme as well as the instructions/guidelines/decisions to be issued/taken by DH1 from time to time with respect to the scheme.

Thanking you,

Yours sincerely,
(Signatures of Authorised signatory)
Name & Designation
Manufacturer Name

(Affix the Official SEAL)

Date:
Place:

The author Sushant Gangurde is a legal analyst @Taxblock India who aims to educate people about various tax laws and financial planning.