The Indian government has extended the FAME-II scheme to boost the adoption of electric vehicles (EVs). The scheme provides subsidies for EVs until March 31, 2024, or until the allocated funds run out.
FAME-II stands for Faster Adoption and Manufacturing of Electric Vehicles in India. It was launched in April 2019 with a budget of Rs. 10,000 Crore for three years. The scheme aims to create demand for EVs by providing incentives to buyers and manufacturers.
86% of the total budget is allocated for demand incentives, which encourages the adoption of xEVs by offering financial support to buyers. The scheme focuses on various segments of EVs including e-buses, e-3 wheelers, e-4 wheeler passenger cars, and e-2 wheelers.
Advanced battery-powered and registered vehicles qualify for incentives under the scheme. The focus is on public transportation and commercial vehicles, although privately owned registered electric two-wheelers are also covered as a mass segment.
The recent extension of the FAME-II scheme ensures that subsidies will continue to benefit EV buyers until March 31, 2024. However, the availability of funds should be monitored as the scheme will operate until the allocated budget lasts. This move enables potential buyers to take advantage of financial incentives while transitioning to cleaner and more sustainable mobility options.
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