FAME-II scheme gets a 4-month extension and Rs 500 cr outlay in a breather for EV firms
FAME-II scheme: EV firms were in a bind over the deadline with many offering heavy discounts in the hope of exhausting their inventories before the March 31 kicked in.
- Mar 7, 2024,
- Updated Mar 7, 2024 10:26 AM IST
FAME-II scheme: In a breather for electric two/three-wheeler manufacturers, the Centre has reportedly extended its FAME-II (Faster Adoption and Manufacturing Electric Vehicles) scheme by four months to avoid any disruption in the EV industry.
The scheme was to expire on March 31. The Centre, according to a CNBC-TV18 report, has allocated Rs 500 crore to cover subsidies for demand incentives for e2W and e3Ws until July 31, 2024.
The FAME-III scheme may get nod only after the general elections, the report added.
EV firms were in a bind over the deadline with many offering heavy discounts in the hope of exhausting their inventories before the March 31 kicked in.
Bengaluru-based Bounce Infinity and Ola Electric cut the prices of their products by ₹24,000 and ₹25,000 respectively, in the last two weeks.
The FAME II scheme, with a budget outlay of Rs 10,000 crore, was introduced in 2019 for a period of three years, targeting to support 7,000 e-buses, 5 lakh e-3 Wheelers, 55,000 e-passenger cars and 10 lakh e-two wheelers. Of this, a total of 12,16,380 vehicles have been subsidised till now with an expenditure of Rs 5,422 crore (as of December 21, 2023).
At present, electric four-wheelers for fleet operators are currently eligible for FAME 2 subsidy.
FAME-II scheme: In a breather for electric two/three-wheeler manufacturers, the Centre has reportedly extended its FAME-II (Faster Adoption and Manufacturing Electric Vehicles) scheme by four months to avoid any disruption in the EV industry.
The scheme was to expire on March 31. The Centre, according to a CNBC-TV18 report, has allocated Rs 500 crore to cover subsidies for demand incentives for e2W and e3Ws until July 31, 2024.
The FAME-III scheme may get nod only after the general elections, the report added.
EV firms were in a bind over the deadline with many offering heavy discounts in the hope of exhausting their inventories before the March 31 kicked in.
Bengaluru-based Bounce Infinity and Ola Electric cut the prices of their products by ₹24,000 and ₹25,000 respectively, in the last two weeks.
The FAME II scheme, with a budget outlay of Rs 10,000 crore, was introduced in 2019 for a period of three years, targeting to support 7,000 e-buses, 5 lakh e-3 Wheelers, 55,000 e-passenger cars and 10 lakh e-two wheelers. Of this, a total of 12,16,380 vehicles have been subsidised till now with an expenditure of Rs 5,422 crore (as of December 21, 2023).
At present, electric four-wheelers for fleet operators are currently eligible for FAME 2 subsidy.