By The FAME scheme in India has received a significant boost with the recent allocation of additional funds by the government. There were lots of speculations about its discontinuation due to achieving targeted volumes, the interim budget announcement unveiled a substantial allocation of Rs. 2671 crore for the FAME scheme. Although the revised estimate for the next financial year stands at Rs. 4,807 crore, slightly lower than the previous budget estimate, it underscores the government’s commitment to sustain incentives for electric mobility.
Originally launched in 2015, the FAME scheme initiated the nation’s transition towards electric vehicles (EVs), followed by FAME II in 2019, with a notably higher outlay of Rs. 10,000 crore for three years until 2022. Notably, the scheme was extended to March 2024 due to the COVID-19 pandemic. The scheme’s objective is to support various electric vehicles, including e-buses, e-three-wheelers, electric four-wheelers, and electric two-wheelers. The Ministry of Heavy Industries reported substantial subsidies totalling Rs. 5,294 crores for approximately 11.80 lakh EVs by December 2023.
This support primarily benefited two-wheelers, three-wheelers, and four-wheelers, driving early-stage adoption across the country. The scheme’s extension has been a topic of interest among Original Equipment Manufacturers (OEMs) and industry bodies, particularly in the two-wheeler segment. In response to industry demands, the government has allocated Rs. 3,500 crore towards the production-linked incentive scheme for automobiles and components for the upcoming financial year. Despite uncertainties surrounding the continuation of FAME II beyond March 31, the allocation of funds indicates the government’s intent to boost electric mobility initiatives.
