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NEW DELHI, 1 August 2023: The Government of India is planning to significantly boost the subsidy allocation for electric vehicle (EV) purchases in the upcoming third edition of the Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicles in India (FAME) program. With the increasing popularity of EVs in the country, the FAME III corpus may see a three-fold increase, reaching around INR 30,000 crore. The current FAME II scheme had an allocation of INR 10,000 crore.
Focus on EV Charging Infrastructure
In addition to the increased subsidy for EV purchases, the FAME III scheme will also prioritize the development of charging infrastructure. The allocation for charging infrastructure is expected to at least double from what was set aside in the FAME II phase, which was INR 1,000 crore. The government recognizes the crucial role of charging infrastructure in promoting EV adoption and aims to address the current gaps in the availability of charging stations across the country.
Consultations and Industry Inputs
The government has initiated discussions and consultations regarding the implementation of the FAME III scheme. During these consultations, the automobile industry has presented suggestions highlighting the need for further fiscal support to strengthen India’s EV ecosystem. The government will hold extensive industry consultations to finalize the scheme and ensure that it aligns with the evolving needs of the electric vehicle market in the country.
Conclusion
The proposed FAME III scheme with a potential allocation of INR 30,000 crore demonstrates the Indian government’s commitment to promoting electric mobility in the country. By increasing subsidies for EV purchases and focusing on charging infrastructure development, the government aims to accelerate the adoption of electric vehicles and drive towards a cleaner and sustainable transportation future. The forthcoming industry consultations will play a crucial role in shaping the final scheme to cater to the diverse requirements of India’s fast-growing electric vehicle market.
Image credit: Loop
