Allocation Doubled under FAME-2 scheme
FAME is the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles. It was launched in 2015 to increase the sale of electric vehicles in the country. The scheme was launched under the National Electric Mobility Mission. During the Union Budget 2023, the GoI allocated Rs 5,172 crores for the fiscal year 2024. This is 78% higher as compared to the 2022 budget.
History of Allocations
- In 2019, Rs 10000 crores were allocated to take the scheme step by step
- In the fiscal year 2020, the allocations were increased to Rs 500 crores
- In 2021, 318 crores were allocated
- In 2022, it was further increased to 500 crores
- In 2023, GoI allocated Rs 2,897 crores
Despite increasing funds, FAME has not been successful as compared to other flagship programs of the government receiving the same proportion of the budget. For the proportion of the budget being allocated, FAME should have increased the electric vehicle numbers in the country. However, it is not so. This is mainly because subsidies of FAME are left unpaid. Around 12 manufacturers of electric and hybrid vehicles, that is, 90% of the electric vehicle market holders did not receive the subsidy in 2022-23. This includes Okinawa and Hero Electric.
Union budget allocated Rs 88,198 crores for climate-related measures. This is 2% of the total expenditure of the budget. In 2024, it was 0.9%.
Category: Government Schemes Current Affairs