FAME-II Scheme Extended: EV Subsidies Available Till March 2024

In a significant move to promote clean mobility and accelerate the adoption of electric vehicles (EVs) in India, the government has announced the extension of subsidies under the second phase of the Faster Adoption and Manufacturing of Electric Vehicles in India (FAME-II) scheme. The revised guidelines ensure that e-vehicles sold until March 31, 2024, or until the allocated funds are exhausted, whichever occurs earlier, will be eligible for these subsidies.

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Enhanced Outlay for FAME-II

To further bolster the country's transition towards sustainable transportation, the Ministry of Heavy Industries has increased the outlay of the FAME-II program from Rs 10,000 crore to Rs 11,500 crore. This augmented budget underscores the government's commitment to incentivizing the adoption of EVs and creating a conducive ecosystem for their proliferation.

Subsidies for Electric Two-, Three-, and Four-Wheelers

Under the revised FAME-II scheme, electric two-wheelers, electric three-wheelers, and electric four-wheelers are eligible to avail of subsidies amounting to Rs 7,048 crore. This financial support aims to make EVs more affordable and accessible to consumers, thereby accelerating their market penetration.

Grants for Capital Asset Creation

In addition to the subsidies for EV purchases, the FAME-II scheme has allocated Rs 4,048 crore towards grants for the creation of capital assets. These grants are intended to support the establishment of charging infrastructure, battery swapping stations, and other essential facilities required for the successful adoption of EVs.

Earmarked Funds for Other Categories

The FAME-II scheme has also set aside Rs 400 crore for the "others" category. This category encompasses a wide range of initiatives, including research and development, pilot projects, and awareness campaigns, all of which contribute to the broader goal of promoting EV adoption in India.

The extension of the FAME-II scheme and the enhanced outlay of Rs 11,500 crore demonstrate the government's unwavering commitment to fostering the growth of the EV industry in India. By providing subsidies, grants, and other incentives, the FAME-II scheme plays a pivotal role in accelerating the adoption of EVs, reducing carbon emissions, and paving the way for a cleaner and more sustainable transportation system in the country.