FAME 2 budget increased to INR 11,500 crore

In a move to further encourage clean mobility, the Ministry of Heavy Industries has announced an increase in the scheme outlay for FAME India Phase II. The initial budget of INR 10,000 crore has been increased to INR 11,500 crore, reflecting a commitment to promoting electric mobility and sustainable transportation in India.

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The Ministry of Heavy Industries has taken a step towards advancing clean mobility in the country. The budget allocation for FAME India Phase II has been raised from INR 10,000 crore to INR 11,500 crore. This financial boost underscores the government’s dedication to fostering electric mobility and sustainable transportation initiatives in the country.

The budget outlay for the FAME 2 scheme will remain in effect until March 31, 2024, or until the allocated funds are depleted, whichever comes earlier. Subsidies within the program apply to electric two-, three-, and four-wheelers.

Notably, the government has already disbursed INR 5,884 crore in subsidies, leaving INR 5,616 crore available for consumers to utilize under the FAME 2 scheme. The FAME initiative has positively impacted 12,11,843 electric two-wheelers, 142,713 electric three-wheelers, and 17,301 electric four-wheelers.

Manish Raj Singhania, President, FADA said, “We, at FADA, welcome the Government’s proactive decision to enhance the outlay of the FAME India Scheme Phase II from INR 10,000 crore to INR 11,500 crore. This significant increase not only underscores the Government’s commitment to clean mobility but also instils confidence in the ecosystem, including manufacturers, dealers and most importantly, consumers. The revised subsidies for e-2Ws, e-3Ws, e-4Ws and the special focus on e-Buses and EV charging infrastructure are pivotal steps towards creating a sustainable and vibrant electric vehicle ecosystem in India”.