FAME-II: According to officials, the government announced on Thursday that it has decided not to extend the FAME-II flagship programme, which promotes electric transportation, past March 31. The media has reported that the Centre has extended the initiative for a temporary four months, until July 31, at a cost of Rs 500 crore. However, the Ministry of Heavy Industries denied these reports.
No FAME-II extension beyond March 31
According to reports, the FAME-II programme has been given a 4-month extension by the government, through July 31. Additionally, the papers stated that an extra Rs 500 crore had been set aside for the purpose of financing subsidies for electric two- and three-wheelers.
The government stated in a statement that funding and time limits applied to the second phase of the programme to encourage the use of electric vehicles in India.
Why should you buy your EV before 31st March?
The FAME II initiative was launched in 2019 with the aim of promoting electric cars (EVs) through faster adoption and manufacturing in India. A maximum of 40% of the vehicle’s cost can be recouped through the FAME II program’s Rs 15,000 per kWh incentive. If you qualify for the subsidy, it will be included in the cost of the vehicle and you won’t need to apply for it again.
So if you are planning to get an electric vehicle, get your hands on it before the 31st of March as you will not get any subsidy after that.
FAME-III subsidy coming?
Although FAME-III proposals have been filed, the approaching general elections are believed to have caused a delay in the program’s implementation. According to reports, after the elections, the new plan might be approved.
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