Government Denies Extension of FAME-II Electric Vehicle Subsidy Scheme Beyond March 31st, Increases Outlay to Rs 11,500 Crore

The Ministry of Heavy Industries has dismissed recent media reports suggesting an extension of the Faster Adoption and Manufacturing of Electric Vehicles in India (FAME-II) scheme beyond its original deadline of March 31st. Contrary to these claims, officials have affirmed that the flagship scheme to promote electric mobility will conclude as scheduled.

Addressing speculation of a temporary extension till July 31st, the Ministry clarified that such reports are unfounded, reiterating that subsidies under FAME-II will remain applicable only until March 31st, 2024, or until funds are exhausted.

However, in a significant development, the Ministry revealed an increase in the program's outlay from Rs 10,000 crore to Rs 11,500 crore. This enhancement underscores the government's commitment to bolstering the adoption of electric vehicles across the country.

Of the revised allocation, a substantial portion amounting to Rs 7,048 crore is earmarked for subsidizing electric two-wheelers, three-wheelers, and four-wheelers. Additionally, Rs 4,048 crore has been allocated for capital asset creation grants, with a further Rs 400 crore designated for miscellaneous purposes.

The FAME-II scheme, introduced as a pivotal component of India's electric mobility roadmap, aims to accelerate the adoption of electric vehicles by offering incentives and subsidies to both manufacturers and consumers. However, officials emphasize that the program is subject to finite funding and term limitations, reaffirming the government's prudent fiscal management.

This announcement comes amidst growing efforts to promote sustainable transportation solutions and reduce reliance on fossil fuels in line with India's broader climate and environmental objectives. As the country navigates the transition towards cleaner mobility alternatives, initiatives like FAME-II play a crucial role in driving innovation and fostering a greener, more sustainable future for all.