The Committee on Estimates has recommended extending the phase II of the Ministry of Heavy Industries’ FAME scheme for providing subsidies to electric vehicle (EV) manufacturers in India. The committee expressed concern over the significant price escalation of EVs if the government support is removed, which may lead to the shutting down of a large number of startups in the field. The panel recommended that the Centre extend the FAME-II scheme by two years beyond its current deadline of March 31, 2024, to evaluate its effectiveness and make necessary adjustments/modifications to promote EVs. The second phase of the FAME scheme was initially launched for three years in 2019 and later extended for two more years until FY24. It aims to support 5 Lakh electric three-wheelers, 10 Lakh electric two-wheelers, 7,000 ebuses, and 55,000 electric four-wheeler passenger cars by providing them subsidies. However, the Ministry of Heavy Industries is reportedly unlikely to extend the scheme beyond its current deadline.
The parliamentary committee on electric vehicles has recommended the extension of the Ministry of Heavy Industries’ Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme to provide subsidies to vehicle manufacturers. The committee has expressed concern over the significant price increase of electric vehicles if the government support is removed, which may lead to the shutdown of many startups in the field.