Do you know about the FAME-II Electric Vehicle Scheme?

New Delhi: The FAME-II Scheme, which aims to encourage electric vehicles (EV), has received 8,596 crores so far, but just 10% of it has been used. The program was originally set to finish on March 31, 2022; however, it has been extended. A subsidy of Rs 819 crore was paid on total electric cars until October 9, according to information obtained under the Right to Information Act (RTI).

What is FAME II Plan?

The Government of India introduced FAME-II, a program to encourage electric vehicles throughout the country. Its goal is to encourage electric mobility by offering tax breaks on new electric cars. In addition, it has as one of its key objectives the establishment of an important charging infrastructure for electric cars, as well as the reduction of pollutants and the reduction of fuel consumption.

FAME-II scheme extended for 24 months

The system had been in place for three years when it was first implemented by the government. However, it will now be in effect until March 31, 2024. Although the plan is still far from meeting its goals, the situation has improved significantly since June of this year, when the subsidy on two-wheelers was practically doubled, which increased the sales.

What do industry insiders have to say?

"The plan has fallen short of its initial goal," said Sohinder Gill, director-general of the Society of Manufacturers of Electric Vehicles (SMEV), a lobbying group for EV makers. However, considering the current surge in electric vehicle demand, it appears that the FAME-II incentive will be phased down before the end of the next two years. The government should also support companies that are creating basic components for electric vehicles.

Three lakh electric vehicles to be sold in 2022- Gill

According to Gill, around three lakh electric two-wheelers would be marketed in India by 2022. Under FAME-II, this covers non-subsidized low-speed scooters. This year, more than 1.50 lakh two-wheelers with combination engines were sold, according to the numbers. EV makers have stated that, in light of the FAME-II, they would release some fantastic cars shortly, which will likely enhance sales.

What is the Budget Plan till 2024?

The FAME-II Scheme has a budget of 10,000 crores for the years 2019 to 2022, while the entire spending for both phases of the program has been Rs.818 crore as of March this year. As a result, the remaining funds are split into three sections. 2021-22 will cost Rs. 1,893 crores, Rs. 3,775 crores in 2022-23, and Rs. 3,514 crores in 2023-24.