Govt. may extend FAME II scheme for EVs till 2025

It is estimated that FICCI’s proposed FAME III scheme would require an outlay of over Rs 30,000 crore over the next 5 years.

According to media reports, the government of India is considering the extension of the FAME II scheme for manufacturing electric vehicles till 2025.

There have been talks of a revised framework under FAME III as proposed by the Federation of India Chambers of Commerce and Industry (FICCI). However, if the latest reports are anything to go by, possibilities are being explored to extend the current edition till a new supporting framework is put in place.

It is said that additional resources could be allotted in the interim budget, but not before the finance ministry’s approval. It is estimated that FICCI’s proposed FAME III scheme would require an outlay of over Rs 30,000 crore over the next 5 years. But, folks in the government are of the view that electric 2-wheeler makers are the largest beneficiaries of the FAME scheme and do not require government support anymore. Instead, investment should be made to develop the ecosystem to support e-mobility.

As per the latest reports, the government has disbursed Rs 5,228 crore in subsidies till December 1, 2023 and has sanctioned Rs 800 crore to IOCL, BPCL and HPCL for setting up 7,500 fast-charging stations across the country.

Source: ET Auto