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FAME-II EV subsidy scheme gets Rs 1,500 Cr boost: Details

Published:

The

Ministry of Heavy Industries

(MHI) has announced a significant

boost

to the funds allotted to the

FAME-II

(

Faster Adoption and Manufacturing of Electric Vehicles

in India)

subsidies

for

green vehicles

in India. The government has increased the outlay of the program from Rs 10,000 crore to Rs 11,500 crore, thus injecting a significant Rs 1,500 crore.

FAME-II subsidies: Availability
Additionally, subsidies for

electric vehicles

sold until March 31, 2024, or until funds are exhausted. This enhanced funding aims to further promote

clean mobility

in the country. The ministry clarified that the scheme operates on a “fund and term limited” basis. This implies that subsidies for demand incentives will be applicable to e-two-wheelers, e-three-wheelers, and e-four-wheelers sold until March 31, 2024, or until the funds are exhausted, whichever comes first.

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The revised outlay includes Rs 7,048 crore for vehicle subsidies, Rs 4,048 crore for capital asset creation grants, and Rs 400 crore for other initiatives.
The FAME II scheme, initially allocated Rs 10,000 crore over three years until 2022, was extended to March 2024. Its original objective was to bolster 10 lakh electric two-wheelers, 5 lakh electric three-wheelers, 55,000 passenger cars, and 7,000 electric buses.

Growing EV sales in India
The total sales of electric vehicles (EVs) saw a remarkable increase in 2023, reaching 1.53 million units compared to 1.02 million in 2022, marking a substantial growth trajectory in EV adoption. This surge highlights the growing preference for EVs as sustainable transportation options.
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