The government is thinking about increasing the subsidy allocation for EV sales in the next third edition of the Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicles in India programme in light of the growing popularity of electric vehicles in India.
According to sources cited by Livemint, the budget for the FAME III plan is anticipated to increase to over Rs 30,000 crore, a major increase from the Rs 10,000 crore budgeted for the FAME II scheme.
The final allocation has not yet been decided; the consultations are still ongoing. Infrastructure for charging EVs will receive a lot of attention in addition to EVs themselves. According to one of the sources quoted in the Livemint post, it is anticipated that the funding for charging infrastructure will at least quadruple from the previous phase.
What to expect from the new project after the FAME II scheme budget increase?
The forthcoming project is expected to boost hydrogen-powered vehicles, which were not given financial support under the previous FAME programmes, according to a story in the Economic Times. The program’s earliest phases were designed to encourage the use of electric vehicles nationwide, with a focus on electric two-wheelers.
These two phases offered significant assistance by providing a 40% subsidy on the car’s retail price. The subsidy for electric two-wheelers was decreased to 15% in the final year of FAME II, though, as the programme advanced. This change was made in order to distribute the leftover monies to more people.
