Centre Extends FAME-II Scheme For EVs: Report

Centre Extends FAME-II Scheme For EV Ecosystem: Report

The Centre has decided to extend the FAME-II scheme (Faster Adoption and Manufacturing Electric Vehicles) for EV manufacturing and to boost faster adoption of EVs in the country. Earlier, the scheme was slated to end by March 31, 2024. According to media reports, the government has extended the scheme not to let any disruption affect the EV sector. As reported by business portals, the government has allocated Rs. 500 crore for subsidies related to demand incentives for e2W and e3Ws until July 31.

The scheme operated for five years from 1st April 2019 with a total budgetary support of Rs. 10,000 crores. Under phase II of the FAME India Scheme, a subsidy amounting to Rs. 5248 crores has been given to electric vehicle manufacturers on the sale of 11,61,350 electric vehicles as of 05.12.2023.

Regarding FAME-III, the Ministry of Heavy Industries (MHI) is expected to allocate the highest grant for the scheme’s third phase, which is meant to boost electric mobility in the country. The MHI is reportedly considering an allocation of Rs 26,400 crore for the sector, the highest ever allocated to the scheme.

As per the government plan, the highest allocation will be made to the electric bus segment, which can get around Rs 9,600 crore, whereas the electric two-wheeler segment can get around Rs 8,158 crore. On the other hand, the electric three-wheelers segment can get around Rs 4,100 crore under the proposed FAME-III scheme.

Apart from this, the Ministry of Heavy Industries (MHI) has also announced an extension of the tenure of the Production Linked Incentive Scheme (PLI) for Automobile and Auto Components by one year. This decision was made after receiving the approval of the Empowered Group of Secretaries (EGoS).

Last month, Parliament was told that the Ministry of Heavy Industries (MHI) has sanctioned 2,877 electric vehicle charging stations in 68 cities across 25 States/UTs. Of these charging stations, 148 are already operational.