- FAME-II incentives valid until March 31, 2024
- Subsidy increased to Rs 15,000 per kWh
- Demand for electric vehicles affected due to pandemic
In a bid to boost the electric vehicles, the Government of India has extended the FAME-II incentive by additional two years. The scheme is now valid until March 31, 2024. Apart from extending the scheme, the government has also increased the subsidy by 50 per cent to Rs 15,000 per kWh as against Rs 10,000 per kWh previously. Lastly, the maximum cap has been increased to 40 per cent of the electric two-wheeler cost as against 20 per cent earlier.
Speaking about the extension of the FAME-II scheme until 2024, Sulajja Firodia Motwani, Chairperson, FICCI Electric Vehicle Committee, said that the continuation of the FAME-II scheme will help the industry in capturing the deferred demand for electric vehicles, with the support of the scheme. Motwani added that the demand for electric vehicles was severely affected due to pandemic and industry was really looking forward to the extension of the FAME-II scheme.
The FAME-II scheme, which was announced in March 2019 with the allocation of Rs 100 billion, has not achieved desired results due to its stringent criteria and multiple challenges for the OEMs. Vehicle incentives distributed stands at just Rs 2.2 billion.
