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FAME 2 Subsidies Power Over 11.5 Lakh EVs on Indian Roads

December 05, 2023 | 2 min read | Industry News

The electric vehicle (EV) landscape in India has witnessed a remarkable surge, with the Phase II of the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) India Scheme playing a pivotal role. As of December 1, 2023, nearly 62 Original Equipment Manufacturers (OEMs) registered under the FAME 2 scheme have collectively sold over 11.5 lakh electric vehicles, claiming subsidies amounting to a substantial Rs 5,228.00 crore.

Initiated by the government with a budgetary support of Rs. 10,000 crores, Phase II of the FAME India Scheme kicked off in April 2019 for an initial three-year period. The scheme, aimed at promoting electric mobility and reducing vehicular emissions, has proven to be a catalyst for the burgeoning EV market in the country.

Breakdown of EV Growth

Here is a comprehensive breakdown of the EV growth facilitated by the FAME 2 Scheme:

Electric Two-Wheelers: Approximately 10,16,887 electric two-wheelers have benefited from the scheme.

Electric Three-Wheelers: The scheme has supported the adoption of 1,21,374 electric three-wheelers.

Electric Four-Wheelers: Around 14,818 electric four-wheelers have been claimed under the FAME 2 subsidies.

Electric Buses: The scheme has also propelled the deployment of 3,487 electric buses across various cities and state transportation undertakings.

Scheme Extension and Capital Allocations

Originally slated for three years, the FAME 2 Scheme has been extended for an additional two years, continuing until March 31, 2024. As a part of its commitment to fostering electric mobility infrastructure, the government has sanctioned nearly 6862 electric buses for intracity operations.

In a significant move towards building a robust charging infrastructure, the government has allocated Rs 800 crore in subsidies to three Oil Marketing Companies (OMCs) of the Ministry of Petroleum and Natural Gas (MoPNG). This funding aims to facilitate the development of 7,432 public electric vehicle charging stations, further boosting the accessibility and convenience of EV charging across the country.

With approximately Rs 5,094 crores in claims submitted by various OEMs as of November 15, 2023, the government has demonstrated its commitment to supporting the EV industry by disbursing Rs 3,815 crore. This proactive approach ensures that OEMs receive timely financial assistance, fostering sustained growth and innovation in the electric mobility sector.

The FAME 2 Scheme stands as a testament to the government's dedication to a cleaner, greener future for India's transportation landscape, with subsidies propelling the adoption of electric vehicles and laying the foundation for a sustainable and eco-friendly mobility ecosystem.

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