Key Highlights
- Govt. contemplating extending the FAME II scheme for EVs
- It reflects the government’s commitment to fostering electric mobility
- FAME II plays a pivotal role in promoting sustainable growth
The Indian government is considering extending the second phase of the Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme until the next fiscal year, showcasing a dedicated effort to sustain market momentum until the expected approval of FAME’s third edition. This move aligns with the government’s commitment to promoting electric mobility and is expected to be addressed in the interim budget.
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Interim Budget And Vote On Account
To secure additional resources for FAME II, an interim budget seeking parliamentary approval may be pursued, given the upcoming general elections in April-May. A vote on account allows essential expenditures for a limited period, ensuring continuity until a new government presents the full budget.
Commitment To Electric Mobility
The potential extension underscores the government’s commitment to electric mobility, adapting policy measures to the evolving needs of the Indian EV industry. FAME II plays a crucial role in sustainable growth by incentivizing EV purchases and addressing environmental concerns.
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Strategic Approach Of FAME II
FAME II, applicable to two-, three, and four-wheelers, began in April 2019 with a total budgetary support of Rs. 10,000 crore over five years, concluding on March 31, 2024. The scheme strategically aims to reduce pollution by promoting renewable energy use in transportation.
Industry Advocacy And Recommendations
FICCI, a leading trade body, proposed extending FAME II for the next five years, with a review provision after three years. The Ministry of Heavy Industries received Rs. 5,127 crore for the current fiscal year, the highest allocation since FAME’s beginning. The Parliamentary Standing Committee on Industry recommended a three-year extension for FAME II to boost electric vehicle adoption.
Addressing Air Pollution Challenges
With three cities among the world’s most polluted, India prioritizes EV adoption to combat air pollution. The government aims for EVs to constitute 30 percent of new vehicle sales by 2030, promoting a sustainable shift in the automotive landscape.
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