New Delhi, February 12: Industry players on Monday hailed the government’s move to enhance the scheme outlay of Faster Adoption and Manufacturing of Electric Vehicles (FAME) India Phase II, saying it will enhance infrastructure, foster widespread adoption and longevity of electric vehicles across the country. The Ministry of Heavy Industries announced that the scheme outlay of FAME India Phase II has been enhanced from Rs 10,000 crore to Rs 11,500 crore under FAME India scheme Phase II in order to give a further push to clean mobility in the country.

The ministry also said that it is a “fund and term limited scheme”, which means that the subsidies for demand incentive will be eligible for e-two-wheelers, e-three-wheelers, and e-four-wheelers sold till March 31, 2024 or till the time the funds are available, whichever is earlier. Tesla Temporarily Trims Some of Its 'Model Y' Vehicles Prices in the US To Grow Sales Amid Rising Competition From China.

“We applaud the government's decision to enhance the FAME India Scheme Phase II outlay to Rs 11,500 crore. This timely boost in investment is a shot in the arm for the EV industry, accelerating its growth trajectory and paving the way for a cleaner, more sustainable future,” VG Anil, CEO of EV battery manufacturer Arenq.

The main objective of the scheme is to encourage faster adoption of electric and hybrid vehicles by way of offering upfront incentives on purchase of EV and also by establishing a necessary charging infrastructure for electric vehicles.

“This Rs 1,500 crore boost sends a clear message: India is serious about electrifying its mobility landscape. Lower upfront costs for EVs, coupled with enhanced charging infrastructure, will incentivize riders to choose eco-friendly travel, accelerating the transition to a zero-emission future,” Mayank Bindal, Founder and CEO, Snap E Cabs, told IANS.

The number of EV charging stations that are operating in the country has gone up to 12,146 (as of February 2 this year), according to the government data. “The extension of FAME II until the end of March with a substantial outlay of 1,500 crore is a positive move,” said Avinash Sharma, Co-Founder of ElectricPe. ‘Mr.Bean’ Actor Rowan Atkinson Blamed in House of Lords for Slump in Sale of EVs in UK During Its Environment and Climate Change Committee Meeting.

“This not only strengthens consumer-side subsidies but also enhances infrastructure, fostering widespread adoption and longevity of electric vehicles across the country,” Sharma added.

(The above story first appeared on LatestLY on Feb 12, 2024 07:06 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website