Government Mulls Extension Of FAME-II Scheme Till March 2025

The Indian government is considering an extension of the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME-II) scheme till March 2025. This comes after the department-related parliamentary standing committee put forth a new report requesting that the FAME scheme be extended by ‘at least three more years'. The report also called for incentivising the purchase of privately owned electric cars in the scheme, along with other types of EVs. 

Also Read: Over Rs 5,200 Crore Disbursed As FAME-II Subsidy On Electric Cars, Two-Wheelers: MHI

The third leg of the FAME scheme is still yet to receive approval from the finance ministry. According to reports, it is still not keen on doing so as it requires allocations to the tune of Rs 30,000 crore over the next five years to encourage the adoption of electric two-wheelers, electric buses, and tractors among others. 

Also Read: Extend FAME Incentives Till 2027; Subsidise Private Electric Cars: Parliamentary Committee

The Ministry of Heavy Industries (MHI) recently stated that 11.53 lakh electric two-wheelers, three-wheelers and passenger vehicles have availed a total of Rs 5,228 crore in subsidies under the FAME-II scheme. The government earlier this year reduced the subsidy on electric two-wheelers in the country as the Rs 2,000 crore allocated to the segment was almost entirely utilised. The scheme was extended following the allocation of another Rs 1,500 crore.