Fame-2 incentive scheme for electric vehicles extended by two more years

Initially to be implemented over a period of three years from April 1, 2019, it will now be in force for up to March 31, 2024.

Published: 26th June 2021 11:12 AM  |   Last Updated: 26th June 2021 11:12 AM   |  A+A-

Electric Vehicles

For representational purposes (Photo | Express Illustrations)

By Express News Service

NEW DELHI: The government’s ambitious scheme to expedite the adoption of electric vehicles—Faster Adoption and Manufacturing of Electric Vehicles in India Phase II (FAME Phase II)—has been extended by 2 years. 

Initially to be implemented over a period of three years from April 1, 2019, it will now be in force for up to March 31, 2024. This extension comes two weeks after the Department of Heavy Industries increased demand incentive for electric two-wheelers (e2W) priced from Rs 10,000/KWh km to Rs 15,000/KWh, a move widely welcomed by the EV industry since it helps them reduces prices of models by Rs 7,000-20,000. 

Two major amendments made in the original Scheme are along expected lines, since it had faced criticism for being ineffective in lifting the share of EVs in the Indian market. According to data available, only 5 per cent or around Rs 500 crore of the allocated Rs 10,000 crore has been spent so far to make green mobility affordable. Sales-wise, only 58,613 e2Ws were sold under the scheme against a targeted 10 lakh units by March 2022.

Commenting on extention, Sohinder Gill, director general at Society of Manufacturers of Electric Vehicles (SMEV), said, “This will allow the EV industry more time to extend the benefits  to customers, due the recent amendments and achive the target under the scheme.”

“In the last few months, we have seen many measures have been announced by Central and State governments, which have brought positive sentiments. The industry is prepared for a major transformation and see EVs occupying major space,” he added. 

India Matters


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