The Ministry of Heavy Industries has increased the financial outlay for the second phase of the FAME Scheme (Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicle) from Rs 10,000 crore to Rs 11,500 crore. This translates to an increase of Rs 1,500. The FAME II scheme was rolled out back in 219 with an outlay of Rs 10,000 crore for three years which ended in 2022 but was extended to March 2024.
Initially, the scheme was aimed at supporting 10 lakh electric two-wheelers, 55,000 passengers, 7,000 electric buses, and 5 lakh electric three-wheelers. By January 31, the government gave subsidies of Rs 5,790 crore in subsidies to the electric vehicle manufacturers against the sale of 13.41 lakh vehicles under the scheme. Specifically, it consists of 16,991 four-wheelers, 1.39 lakh three-wheelers, and 11.86 lakh two-wheelers.
Additionally, the government has approved the usage of 6,862 electric buses for intracity operations by various cities, state transportation enterprises, and state government bodies. Furthermore, oil marketing corporations have received a capital subsidy of Rs 800 crore for 7,432 public charging stations for electric vehicles.
The revised outlay consists of Rs 7,048 crore for subsidies. Two-wheelers get Rs 5,311 crore out of this while Rs 4,048 crore has been allocated for the electric buses and setting up charging stations. The subsidies provided under the scheme will be applicable for vehicles sold until the earlier of March 31 or the depletion of the funds allocated for the scheme.
The government has allocated Rs 2,671 crore for the FAME scheme in the upcoming financial year, as per the interim budget presented last week. Although there has been no specific announcement regarding the extension of the FAME II scheme beyond March 31 or a potential third phase of the scheme, the budget allocation for the upcoming financial year indicates that the government intends to continue with the incentives.