Government Of India Extends FAME Scheme For Six More Months

The government of India has decided to extend the phase one of the FAME scheme by six more months, till 30th September 2018.

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Initially, the FAME-I scheme was supposed to get over on 31st March 2017

Highlights

  • The FAME I scheme was supposed to end on 31 March, 2017
  • The govt. has increased the FAME II budget to Rs. 8730 crore
  • FAME II should begin in October 2018

The government of India has decided to extend the current FAME scheme or Faster Adoption And Manufacturing of (Hybrid &) Electric Vehicles till 30th September 2018. The Ministry of Heavy Industries and Public Enterprises recently issued a notification to this effect. The government hopes that it will be able to launch the second phase of FAME. The amount allocated for subsidy has not been disclosed yet, but the government believes that it will be sufficient, at least for the next six months. Phase-1 of the FAME scheme was initially intended to run for two years, which was FY2015-16 and FY2016-17. But on 30th March 2017, the government decide to extend the scheme till the time it started off with phase-II of the FAME scheme.

"We thank the government for extending the FAME Scheme for another six months. It would certainly help the industry to move forward. Also, we are looking forward to the FAME II Scheme, which we expect would have a much more constructive approach to achieve the desired results," said Sohinder Gill, director- Corporate Affairs, Society of Manufacturers of Electric Vehicles.

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Till 26 July 2017, over 150,550 hybrid and electric vehicles have been given the FAME incentive. The Indian government has said that it will be increasing the budget for supporting electric vehicles in India to ₹ 8,730 crore under the second phase of FAME scheme. Out of ₹ 8,730 crore, it has allocated ₹ 5,550 crore for demand-side incentives, ₹ 2,500 crore for electric buses and ₹ 1,000 crore for electric four-wheelers. Furthermore, the scheme will also earmark ₹ 600 crore for offering incentives on high-speed two-wheelers and ₹ 750 crore will be earmarked for giving incentives to high-speed three wheeler owners.

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