FAME II Scheme For Electric Vehicles Extended Till March 2024

The government has extended the second phase of the FAME scheme till March 24, 2024. According to a report from PTI, the FAME II scheme has been further extended by two years to promote faster adoption of electric mobility and the development of the manufacturing ecosystem in India. The second phase of the FAME (Faster Adoption and Manufacturing of Electric Vehicles) India scheme majorly focuses on supporting the electrification of public and shared transportation. All registered automakers under the FAME II scheme will now be able to avail of the benefits till March 2024.

Also Read: FAME II Amendment: EV Makers Welcome Subsidy Revision, Will Boost Electric Two-Wheeler Sales​

The FAME India scheme was introduced by the government in the year 2015 to promote eco-friendly vehicles

The Ministry of Heavy Industry and Public Enterprises said in the notification that, "Now with the approval of the competent authority, the Ministry his decided that FAME India Phase II scheme is extended for a period of two (2) years i.e. up to 31st March 2024."

The FAME India scheme (Faster Adoption and Manufacturing of (Strong) Hybrid and Electric Vehicles was introduced by the government in the year 2015 to promote eco-friendly vehicles. The first phase of the FAME scheme began on April 1, 2015, which was extended till March 31, 2019. The second phase of the scheme began on April 1, 2019, and was scheduled to end on March 31, 2022.

In February 2019, the Indian government had allocated Rs. 10,000 crore for the FAME II scheme in succession to the FAME I scheme. This allocated amount was channelised to speed up the development of EVs and EV infrastructure in a bid to achieve the target of 100 per cent electrification of vehicles by 2030.

The government recently announced an amendment to the FAME II scheme for electric two-wheelers increasing the demand incentive to Rs. 15,000 per kWh

Industry chamber FICCI said to PTI that the extension will help the industry in capturing the deferred demand for electric vehicles (EVs). It further mentioned, "The demand for EV was severely affected due to the pandemic and industry was really looking forward to the extension of FAME II scheme by a few more years so that the amount allocated under the scheme could be deployed to accelerate demand for electric vehicles."

Also Read: Gujarat EV Policy: Manufacturers Welcome Announcement, Expect EV Sales To Pick Up​

This extension comes two weeks after the Department of Heavy Industries made a revision to the FAME II subsidy for electric two-wheelers. Under the amendment, the government has increased demand incentives for electric two-wheelers to 15,000/kWh from 10,000/Kwh, which has helped in reducing prices by a significant margin. This move was welcomed by the Indian electric auto industry and is likely to boost electric two-wheeler sales.