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FAME-II Scheme extended by 4 months with INR 500 cr boost, ET Auto


<p>The extension comes as a relief for EV companies that were facing challenges meeting the initial deadline. </p>
The extension comes as a relief for EV companies that were facing challenges meeting the initial deadline.

New Delhi: The Centre has extended the FAME-II (Faster Adoption and Manufacturing Electric Vehicles) scheme for the electric vehicle (EV) industry. The scheme, which was initially set to expire on March 31, has now been extended by four months until July 31, 2024. This extension aims to prevent any disruptions in the EV sector, a business news platform reported.

As part of the extension, the government has allocated an additional INR 500 crore to cover subsidies for demand incentives for electric two-wheelers (e2W) and electric three-wheelers (e3W). This financial support is expected to provide relief to EV manufacturers and encourage the adoption of electric vehicles.

The report also mentions that the approval for the FAME-III scheme may be delayed until after the general elections. FAME-III is likely to build upon the foundation laid by FAME-II and continue supporting the growth of the EV market in India.

The extension comes as a relief for EV companies that were facing challenges meeting the initial deadline. Some manufacturers, such as Bounce Infinity and Ola Electric, had resorted to offering heavy discounts to clear their inventories before the March 31 deadline.

The FAME-II scheme, introduced in 2019 with a budget outlay of INR 10,000 crore for three years, aimed to support the adoption of electric vehicles. The targets included subsidizing 7,000 electric buses, 5 lakh electric three-wheelers, 55,000 electric passenger cars, and 10 lakh electric two-wheelers. As of December 21, 2023, a total of 12,16,380 vehicles have been subsidized under the scheme, with an expenditure of INR 5,422 crore.

(Source: Business Today)

  • Published On Mar 7, 2024 at 12:38 PM IST

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