FAME II Scheme's Validity Extended Till September 2020

The Ministry of Heavy Industries and Public Enterprises Department of Heavy Industry has extended the validation of the Faster Adoption and Manufacturing of Electric Vehicles II (FAME II) scheme for a period of three months. All registered automaker under the FAME II scheme will now be able to avail the benefits till September 30, 2020. The extension applies to all approved electric two-wheelers, three-wheelers and four-wheelers with-effect-from July 01, 2020. However, there is no clarity about bigger EVs like electric buses.

Also Read: Hero Electric Appeals For Re-Look Into FAME II Policy

The extension applies to all approved electric two-wheelers, three-wheelers and four-wheelers.

Last year in February, the government had allocated Rs. 10,000 crore for the FAME II scheme in succession to the FAME I scheme. The 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 FAME II scheme primarily aims to incentivise the purchase of electric vehicles and establishing the requisite charging infrastructure for electric vehicles.

The incentives will be specifically given to vehicles which are powered by lithium-ion batteries.

The incentives are mainly given to the commercial three-wheeler and four-wheeler vehicles along with private two-wheelers. Through this initiative, the government was targeting to facilitate the purchase of 10 lakh electric two-wheelers, 5 lakh electric three-wheelers, 55,000 electric four wheelers and 7000 electric buses. However, incentives are given specifically to those vehicles which are powered by a lithium-ion battery or run on other advance technologies like fuel cell, as an effort to encourage new age technologies. After the FAME II scheme was announced, we saw automakers like Hyundai India, MG Motor India among others coming up with new EV models in the Indian market.