Government plans to extend FAME II scheme to FY25
The Indian government is considering extending the second phase of the FAME (Faster Adoption and Manufacturing Electric Vehicles) scheme into the next fiscal year. This is an attempt to maintain growth in the electric vehicles (EV) market until the third edition is approved. Additional resources for the flagship program may be sought in the interim budget through a vote on account, as general elections are set for April-May next year.
FAME II's role in promoting sustainable growth
FAME II, which began on April 1, 2019, aims to address environmental concerns, such as pollution reduction, by promoting renewable energy sources for transportation. With a budget of Rs. 10,000 crore for five years, ending on March 31, 2024, the scheme offers subsidies for EV purchases and supports sustainable growth.
Recommendations for EV adoption in India
Earlier this month, the Federation of Indian Chambers of Commerce and Industry (FICCI) proposed extending FAME II for another five years, with a review after three years, to the Ministry of Heavy Industries (MHI). The proposal includes a provision for a review at the end of three years to assess the scheme's effectiveness and make any necessary adjustments. The Parliamentary Standing Committee on Industry also recommended a three-year extension in its recent report on 'Electric Vehicle Promotion.'
India's goal to shift toward EVs
Currently, three Indian cities rank among the top 10 most polluted cities worldwide. India is addressing this severe air pollution by promoting the adoption of EVs as a sustainable substitute for conventional combustion engine cars. The objective is to drive a transition toward EVs, aiming for them to represent 30% of all new vehicle sales in the nation by 2030.
