According to the recent notification issued by the Department of Heavy Industry, the scheme which was only till FY 2016-17 has now been extended till September 2017. For more details on it, you can access the notification through the following link.

The FAME scheme introduced in April 2012 is to be implemented over a period of 6 years till 2020 to support hybrid/electric vehicles market development and its manufacturing. Under this scheme, demand incentives will be availed by buyers (end users/consumers) upfront at the point of purchase and the same shall be reimbursed by the manufacturers from Department of Heavy Industries, on a monthly basis.

The demand incentive benefit will be passed on to the consumer upfront at the time of purchase of the xEV itself by way of paying reduced price.

For more information, please visit the following link.

Presently scheme is applicable in selected areas like as notified separately broadly covering following cities:
a) Cities under ’Smart Cities’ initiatives.
b) Major metro agglomerations – Delhi NCR, Greater Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Ahmedabad.
c) All State Capitals and other Urban Agglomerations/Cities with 1 Million+ population (as per 2011 census)
d) Cities of the North Eastern States.
However, for 2 and 3 wheeler, scheme is applicable in entire country.

Please visit the link for more information.

Phase I of the scheme is a sort of pilot project just to see the reaction of people to the electric and hybrid vehicles. If this phase is successful, in next phase, scheme will be applicable throughout the country. 

For more information, please visit the following link.