Govt has incentivised 11.53 lakh EVs with subsidies worth Rs 5,228 crore under FAME II scheme

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FAME II scheme

Starting on April 1, 2019, the FAME II scheme required an investment of Rs 10,000 crore spread over five years.

Under the second phase of the Faster Adoption and Manufacturing of Electric Vehicles (FAME II) plan, the Union government has provided subsidies of Rs 5,228 crore to encourage the sale of 11,53,079 electric vehicles (EVs).

In order to support the electrification of public and shared transportation, the FAME II scheme, which had an outlay of Rs 10,000 crore over five years, started on April 1, 2019, and provided subsidies for 7,000 electric buses, 5,000,00,000 electric three-wheelers, 55,000 electric cars, and 10,000,000 electric two-wheelers. Under the FAME II program, infrastructure development for charging is also encouraged.

But according to the Ministry of Heavy Industries (MHI) in its year-end review 2023, the Department of Expenditure (DoE) has reviewed and approved the proposal to increase the FAME II scheme’s budget from Rs 10,000 crore to Rs 11,500 crore in light of its goals.

According to MHI, makers of electric vehicles have received subsidies of Rs 5,228 crore under Phase II of the FAME India initiative, contingent upon the sale of 11,53,079 electric vehicles as of December 1, 2023.

Under the FAME II program, a number of state transportation undertakings, city transportation undertakings, and municipal corporations have placed supply orders for 3,390 electric buses in excess of the authorized amounts. 3,037 of the 3,390 electric buses have been put into service thus far.

Furthermore, under NITI Aayog’s aggregation approach, Convergence Energy Services Ltd (CESL) is handling the case for an additional 3,472 electric buses. 454 of the 3,472 electric buses have been put into service.

Therefore, a total of 6,862 electric buses (3,390 units + 3,472 units) will eventually be deployed in various states under the FAME II scheme, according to MHI.

In addition, MHI reports that 148 EV public charging stations have been put into service.

On March 28, 2023, MHI stated that the PSU oil marketing companies, Indian Oil, Bharat Petroleum, and Hindustan Petroleum, will get Rs 800 crore under the FAME II initiative to establish 7,432 public fast charging stations throughout the nation.

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