According to sources cited by CNBC-TV18, the Indian government has extended the FAME-II initiative (Faster Adoption and Manufacturing EVs) for electric mobility by four months. In order to avoid any disruptions to the ecosystem of electric vehicles (EVs), an extension has been granted. The original plan was for the scheme to end on March 31, 2024. Up until July 31, 2024, the government has set aside Rs. 500 crore to fund demand incentives for e2W and e3Ws.
The proposed FAME-III initiative should receive support of Rs. 10,000 crore, according to the Expenditure Finance Panel’s recommendation. The Rs. 500 crore allotted will be modified as soon as the FAME-III budget is authorized. But FAME-III won’t probably be approved until after the next round of elections.
Upcoming production of EVs
According to a Moneycontrol story from December 2023, the Center is apparently considering extending the second phase of FAME into the upcoming fiscal year for the production of electric vehicles (EVs) in an effort to keep the market moving forward until the third iteration of the FAME scheme is approved.
As it promotes the use of renewable energy sources for transportation needs, FAME II is purposefully designed to address environmental concerns, particularly in terms of pollution mitigation. This helps to support larger initiatives aimed at fostering cleaner and more eco-friendly mobility solutions in the nation.
In the meantime, sales of electric two-wheelers (E2W) in India rose by almost 24%. According to data accessible on the Vahan portal, Year-on-Year (YoY) to 81,963 units in February of 2024 and crossed 800,000 units in the 11 months of FY24. India’s EV two-wheeler registrations peaked in May 2023 at 1,04,055 units, up from 66,053 units in February 2023. According to the Vahan website, registrations have decreased to about 45,000 units after the FAME-II incentive was reduced in June.
