According to Budget 2024, the government may continue to fund the EV FAME II program into the next fiscal year

 According to Budget 2024, the government may continue to fund the EV FAME II program into the next fiscal year

According to Budget 2024, the government may continue to fund the EV FAME II program into the next fiscal year

An indication of the Center's steadfast dedication to advancing electric mobility is the potential expansion of the program. This growth brings the policy measures into line with the new demands of the Indian EV sector.

A strategy plan called FAME II aims to address environmental problems, namely pollution reduction.

In an honest attempt to keep the market moving forward until the third edition of FAME is approved, the Center is allegedly thinking of extending the second phase of FAME (Faster Adoption and Manufacturing Electric Vehicles) to the next fiscal year for the production of EVs. is contemplating. Organize.

Given that general elections are scheduled for April or May of next year, the administration may look for more funding for the flagship program in the interim budget. This may be accomplished via Vote on Account. Vote on Account facilitates temporary administration until a comprehensive budget is issued by the next government by allowing the government to seek parliamentary permission for required expenditures for a short time.

An indication of the Center's steadfast dedication to advancing electric mobility is the potential expansion of the program. This growth brings the policy measures into line with the new demands of the Indian EV sector. By offering financial assistance for the purchase of electric vehicles, the program significantly contributes to the promotion of sustainable development.

Additionally, as it promotes the use of renewable energy sources for transportation needs, resulting in cleaner and Contributes to larger initiatives aimed at promoting more environmentally-friendly mobility solutions, FAME II is strategically designed to address environmental concerns, particularly in terms of pollution mitigation.

Commencing on April 1, 2019, the FAME II subsidy program, which covers two-, three-, and four-wheelers, was funded with a total of Rs 10,000 crore over a five-year term. The deadline for this grant term is March 31, 2024.

Leading trade association Federation of Indian Chambers of Commerce and Industry (FICCI) proposed extending the policy for a further five years to the Ministry of Heavy Industries (MHI) earlier this month. The plan calls for a review to be conducted after three years in order to evaluate the scheme's efficacy and make any required modifications.

For the current fiscal year, MHI received the largest allocation of Rs 5,127 crore since the launch of the Rs 10,000 crore FAME project in 2019.

More significantly, the Indian government has recently adopted a number of proposals from the Parliamentary Standing Committee on Industry to promote the use of electric cars. In its most recent report, the panel recommended a three-year extension of FAME II for the promotion of electric cars.

Three Indian cities are now listed among the top 10 most polluted cities in the world. The government is aggressively pushing the use of electric cars (EVs) as a sustainable substitute for conventional combustion engine vehicles in response to the severe problem of air pollution. The objective is to promote the transition to electric vehicles (EVs) so that, by 2030, they will represent 30% of all new car sales in the nation.