The Indian government has granted a four-month extension to the FAME-II scheme (Faster Adoption and Manufacturing Electric Vehicles) for electric mobility, CNBC-TV18 reported quoting sources. The extension has been granted to prevent any disruption in the electric vehicle (EV) ecosystem. The scheme was originally scheduled to expire on March 31, 2024. The government has allocated Rs. 500 crore to cover subsidies for demand incentives for e2W and e3Ws until July 31, 2024.
The Expenditure Finance Panel has recommended support of Rs. 10,000 crore for the upcoming FAME-III scheme. The allocated Rs. 500 crore will be adjusted once the outlay for FAME-III is approved. However, FAME-III is likely to be approved only after the upcoming elections.
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Moneycontrol reported on December 2023 that the Centre is reportedly contemplating extending the second phase of FAME into the next financial for manufacturing electric vehicles (EVs) in an earnest attempt to maintain momentum in the market until the approval of the third edition of the FAME scheme.
FAME II is strategically designed to address environmental concerns, particularly in terms of pollution mitigation as it encourages the use of renewable energy sources for transportation needs, contributing to broader initiatives aimed at fostering cleaner and more eco-friendly mobility solutions in the country.
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Meanwhile, India’s electric two-wheeler (E2W) sales increased by nearly 24 percent Year-on-Year (YoY) to 81,963 units in February of 2024 and crossed 800,000 units in the 11 months of FY24, as per the data available on Vahan portal
In February 2023, India’s EV two-wheeler registrations were recorded at 66,053 units and touched a high of 1,04,055 units in May 2023. Since the reduction of FAME-II subsidy in June, registrations have gone down to nearly 45,000 units, as per Vahan website.
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