New Delhi, Jan 4 (KNN) The Union Finance Ministry has allocated an extra Rs 1,500 crore for the second phase of the Faster Adoption and Manufacturing of Electric Vehicles in India (FAME-II) program.

The Department of Expenditure (DoE) approved a proposal to raise the allocation for FAME-II from Rs 10,000 crores to Rs 11,500 crores.

This move aims to alleviate concerns that funds might deplete before the scheme concludes in March 2024, driven by the robust sales of electric vehicles (EVs).

The budget was sanctioned with the scheme's goals of promoting electric vehicles in mind.

As of December 26, the government had utilized Rs 8,948 crore out of the allocated Rs 10,000 crore funds for the program.

By injecting additional funds, the government has increased its support targets for all vehicle categories except buses.

The support target for the total number of vehicles was revised from 1.56 million units to 1.74 million units.

Specifically, the target for electric two-wheelers saw a 50 per cent increase to 1.55 million units, while for electric three-wheelers, it was reduced by 68 per cent to 155,536 units.

Electric vehicle (EV) sales in 2023 have experienced a strong surge, despite subsidy cuts and regulatory shifts.

The total number of electric vehicle registrations in 2023 reached 1.5 million units, a significant increase compared to the previous year's figure of just over 1 million.

For two consecutive years, the country has witnessed electric vehicle (EV) sales surpassing one million.

In 2024, the industry anticipates that sales of electric two-wheelers (e2Ws) alone will surpass the one-million mark.

(KNN Bureau)