The Ministry of Heavy Industries has stated it will not extend FAME-II subsidies for electric vehicles. Reports emerged on March 7 that the government was all set to renew the FAME-II policy till July 31 with an outlay of Rs 500 crore, however, news agency PTI has now reported that the government has reiterated the policy will expire on March 31, as originally planned. Hence subsidies under the second phase of the FAME scheme will only be applicable to EVs sold till March 31, 2024, or till the time funds are available, as the Heavy Industries ministry stated last month.
Also Read: Extend FAME Incentives Till 2027; Subsidise Private Electric Cars: Parliamentary Committee
While the programme’s outlay was increased from Rs 10,000 crore to Rs 11,500 crore, the government has previously confirmed FAME- II is ‘fund- and term-limited’. As per the revised outlay, Rs 7,048 crore was set aside for electric two-wheelers and three-wheelers, while Rs 4,048 crore was designated for the ‘creation of capital assets’. Aside from this, Rs 400 crore was also set aside for other purposes.
Over 11,53,079 electric vehicles have benefitted from subsidies under the FAME-II scheme, as per the government
The FAME-II subsidy was enacted in April 2019, and as of December 2023, Rs 5,228 crore in subsidies has been availed by buyers of electric two-wheelers, three-wheelers and passenger vehicles. It was also reported that over 11,53,079 electric vehicles have benefitted from subsidies under the FAME-II scheme.
Also Read: Over Rs 5,200 Crore Disbursed As FAME-II Subsidy On Electric Cars, Two-Wheelers: MHI
With the expiration of the FAME-II subsidy, expect a further increase in most electric two-wheeler prices to follow soon after March 31.
