The Indian electric vehicle (EV) industry received a much-needed boost with the **revival of the FAME-II scheme**. The scheme, which provides subsidies for electric vehicles, was originally scheduled to expire on March 31, 2024. However, in a move to **support the ongoing growth** of the EV sector, the government has announced a **4-month extension** along with an **additional allocation of Rs 500 crore**.
**What is the FAME-II scheme?**
Launched in 2019, the **Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME-II)** scheme aimed to **promote the adoption and manufacture of electric vehicles** in the country. It offered **demand incentives** for electric two-wheelers (e2Ws), three-wheelers (e3Ws), four-wheelers, and electric buses.
**Why was the extension needed?**
The extension comes as a **welcome relief** for EV manufacturers who were concerned about the **potential impact of the scheme's expiry** on their sales. The additional funding of Rs 500 crore will help **bridge the gap** between the existing FAME-II budget and the **demand for EV subsidies**.
**What are the implications of the extension?**
* **Continued EV adoption:** The extension of the FAME-II scheme is expected to **encourage further adoption of electric vehicles** in India. This will benefit both **consumers** who can avail of subsidies and **manufacturers** who can witness **increased sales**.
* **Boost for the EV ecosystem:** The additional funding will provide a **much-needed boost** to the entire EV ecosystem, including **battery manufacturers, charging infrastructure providers, and other stakeholders**.
* **Time for policy clarity:** The 4-month extension provides the government with **additional time to finalize the details of the next phase of the FAME scheme**. This will ensure a **smooth transition** and continued support for the EV industry.
**The revival of the FAME-II scheme is a positive step towards the government's vision of making India a global leader in the electric vehicle space.** It is expected to **accelerate the adoption of EVs** and contribute to a **cleaner and more sustainable future** for the country.