The Ministry of Finance has raised concerns about extending subsidies for electric vehicles (EVs) beyond the current fiscal year under the Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme. The Heavy Industries Ministry proposed a five-year extension with higher allocations for EV subsidies, aiming to support the growth of electric and alternate fuel vehicles. However, government officials argue that major electric two-wheeler manufacturers, the primary beneficiaries of earlier FAME schemes, may not require additional support. Discussions between the Heavy Industries Ministry and Finance Ministry are ongoing to assess the maturity of the EV segment and the need for continued government assistance.
Finance Ministry Questions Extension of FAME Scheme Subsidies for Electric Vehicles
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