The Ministry of Heavy Industries (MHI) has recently announced a significant update regarding the FAME-II (Faster Adoption and Manufacturing of Electric Vehicles in India) subsidies for electric vehicles in India. The government has decided to increase the program’s budget from Rs 10,000 crore to Rs 11,500 crore, injecting an additional Rs 1,500 crore. This increase in funding aims to promote clean mobility in India. Moreover, the subsidies for electric vehicles will remain applicable until 31st March 2024 or until the funds are exhausted (whichever comes first).
Breakdown of the Revised Outlay
The revised outlay of Rs. 11,500 crore comprises Rs.4048 crore toward capital asset creation grants, Rs.7048 crore for vehicle subsidies, and Rs. 400 crore for other endeavors. Initially, the FAME II scheme was allocated Rs 10,000 crore over three years until 2022 but remains extended until March 2024.Remarkable Growth in EV Sales
In 2023, there was a phenomenal surge in the sales of electric vehicles (EVs), with a staggering rise at 1.53 million units, surpassing the 1.02 million units sold in 2022. This substantial growth trajectory in EV adoption highlights the growing preference for EVs as sustainable transportation options.Original Goals of the Scheme
Ultimately, let’s not forget the scheme’s original goal was to sustain the adoption of 10 lakh electric two-wheelers, 5 lakh electric three-wheelers, 55,000 passenger cars, and 7,000 electric buses.LEADERBOARD
