Key Points
There was no announcement about FAME III scheme, instead, the FM went on to slash the overall allocation for the Faster Adoption & Manufacturing of Electric Vehicles (FAME) scheme by huge 55 per cent...
In the expenditure budget, the outlay for FAME has been reduced to Rs 2671.33 crores for financial year 2024-25 from Rs 4807.40 in current financial year (FY24) - a reduction of 55.58 per cent to be precise...
This is starkly in contrast to assumption of hike in FAME scheme to about Rs 10,000-12,000 crore for FY25...
According to the current FAME II guidelines, the government provides a subsidy of Rs 10,000 per kWh of battery, with a maximum cap of 15 percent of the electric two-wheeler's ex-factory price...
The electric vehicle (EV) industry has been advocating for an increased allocation in the FAME (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) scheme, given that alternative support mechanisms like the production-linked incentive (PLI) scheme have stringent conditions, such as high minimum net worth norms...
