The Heavy Industries Ministry received an allocation of INR 5,127 crore for this fiscal year, marking the largest disbursement since the INR 10,000-crore program began in 2019.
The Ministry of Heavy Industries is set to approach the Finance Ministry, seeking an additional sum between INR 1,500-1,700 crore for the FAME (Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles) initiative, as stated by top officials from the ministry. Due to a surge in the sales of electric vehicles, the budget set for the second phase might be depleted before its expected end in March 2024.
For the ongoing fiscal year, the Heavy Industries Ministry has received an allocation of INR 5,127 crore. This represents the most considerable sum since the inception of the INR 10,000-crore program in 2019.
A high-ranking official commented on the situation, “The demand for EVs is skyrocketing. There’s a real chance we might deplete our funds. Therefore, discussing the allocation of additional funds under FAME II is on the table.” The aim is to ensure the scheme remains adequately funded throughout its intended duration.
While the exact sum the ministry hopes to acquire remains unspecified by the aforementioned official, another source familiar with the matter indicated it to be INR 1,500-1,700 crore in the ballpark.
The adoption of EVs has been witnessing a consistent rise. For example, the sales figures for high-velocity e-scooters have seen a 20% yearly and 14% monthly growth, reaching 62,355 units. E-three-wheelers show significant growth, with the numbers in August rising to 56,747 units, a significant jump from 33,130 units a year prior.
The enthusiasm is mirrored in the passenger vehicle sector. Although Tata Motors is at the forefront, the official mentioned earlier anticipates the demand to escalate further as more brands venture into this segment.
In addition to the above, buses will also benefit from the FAME II incentives, with some receiving them this year and the rest in the following year. As per the data released by the Heavy Industries Ministry on September 20, 2023, 992,751 EVs have availed incentives under FAME II, amassing to a total of INR 4,708 crore.
