New Delhi: The Ministry of Heavy Industries (MoHI) is looking to restructure the allotment of funds in the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME) Phase-II scheme, as per three sources aware of the matter.
With the restructuring, it is also considering seeking an additional INR 1,500 crore as support from the finance ministry. Fund allotment shall be increased for the two-wheelers and reduced for three wheelers. Similarly, allotment will be slightly higher for 4-wheelers, but will be less for buses than the present level.
| Segment | Current Allotment | Proposed Allotment |
| E-2Ws | INR 2,000 cr | INR 5,311 cr |
| E-3Ws | INR 2,500 cr | INR 987 cr |
| E-4Ws | INR 551 cr | INR 750 cr |
| E-buses | INR 3,545 cr | INR 3,209 cr |
| Others | INR 1,404 cr | INR 1,243 cr |
| Total | INR 10,000 | INR 11,500 |
The government launched the FAME-II scheme in 2019 with a total outlay of INR 10,000 crore for three years. In 2021, the scheme was extended for two more years till March 31, 2024.
For fiscal 2023-24, MoHI has been allotted INR 5,172 crore. This is the highest allocation for a year since the launch of the scheme four years ago.
While the EV sales hit the one million mark for the first time in CY2022, it crossed the mark in less than nine months in CY2023.
As per the VAHAN data, in CY2023 (January-September), the two-wheeler segment accounted for 57% of the total EVs sold in the country. This is followed by 37% three-wheelers and about 5% passenger vehicles.
