Electric Vehicle Industry Receives INR 5790 Crores Subsidy Under FAME-II

Electric vehicle manufacturers have been granted a subsidy totaling INR 5790 crores under the second phase of the Faster Adoption and Manufacturing of (Hybrid) Electric Vehicles (FAME) India Scheme. 

The subsidy corresponds to the sale of 13,41,459 electric vehicles as of January 31, 2024, further highlighting the country's commitment to promoting eco-friendly transportation.

The Ministry of Heavy Industries (MHI) has been actively supporting the electric vehicle ecosystem, as evident in the allocation and utilization of funds under Phase-II of the FAME scheme. The budgetary details are as follows:

• 2019-2020: INR 500.00 Crore (Utilized: INR 500.00 Crore)
• 2020-2021: INR 318.36 Crore (Utilized: INR 318.36 Crore)
• 2021-2022: INR 800.00 Crore (Utilized: INR 800.00 Crore)
• 2022-2023: INR 2897.84 Crore (Utilized: INR 2402.51 Crore)
• 2023-2024: INR 5171.97 Crore (Utilized: INR 1980.83 Crore)

Moreover, to facilitate the growth of electric vehicles, the MHI sanctioned 2,877 electric vehicle charging stations across 68 cities in 25 States/UTs. Currently, 148 electric vehicle charging stations are operational, contributing to the development of an extensive charging infrastructure.

In a noteworthy move, the Ministry sanctioned INR 800 crore as a capital subsidy to three Oil Marketing Companies (OMCs) under the Ministry of Petroleum and Natural Gas (MoPNG) for the establishment of 7,432 public electric vehicle charging stations.

Under the FAME-II Scheme, the subsidy of INR 5790 crores was allocated based on the sale of 11,85,829 two-wheelers, 1,38,639 three-wheelers, and 16,991 four-wheelers as of January 31, 2024. Additionally, MHI sanctioned 6,862 electric buses for intracity operations, with 3,487 e-buses already supplied to State Transport Undertakings (STUs) as of November 29, 2023.

Krishan Pal Gurjar, Minister of State for Heavy Industries, provided this information in a written reply in the Rajya Sabha, emphasizing the government's commitment to fostering a sustainable and eco-friendly transportation ecosystem.