The government is considering extending the second leg of its flagship incentive scheme for manufacturing electric vehicles (EVs) into the next fiscal year, and it is likely to seek additional resources to expand its corpus in the interim budget.
With the third edition of the Faster Adoption and Manufacturing Electric Vehicles (FAME) scheme still awaiting approval from the finance ministry, sources familiar with the details told ET that options for extending the current edition until a new supporting framework is in place are being considered.
"Additional funds for FAME II can be sought in a vote on account," said a person aware of the matter. The extension would not require multiple approvals as needed for a fresh scheme and will help maintain momentum in the market in the interim, he added. Next year's budget will be a vote on account as general elections are due in April-May.
The government is considering the extension of the second leg of its flagship incentive scheme for manufacturing electric vehicles (EVs) into the next financial year and is likely to seek additional resources in the interim budget to expand its corpus.
With the third edition of the Faster Adoption and Manufacturing Electric Vehicles (FAME) scheme still awaiting approval from the finance ministry, sources familiar with the details told ET that options for extending the current edition until a new supporting framework is in place are being considered.
"Additional funds for FAME II can be sought in a vote on account," said a source familiar with the situation. The extension would not necessitate multiple approvals, as would a new scheme, and would help maintain market momentum in the interim, he added. Because general elections are scheduled for April-May of next year, the budget will be a vote on account.
