New Delhi: The government is thinking about prolonging its primary incentive program for manufacturing electric vehicles (EVs) – the second phase of the Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme – into the upcoming financial year. To support this extension, there's a likelihood of requesting additional funds in the interim budget to bolster its funding.

As the finance ministry hasn't yet approved the third phase of the FAME scheme, officials are exploring options to extend the ongoing phase until a new supportive structure is established, according to sources familiar with the matter who spoke with ET.

"A request for extra funds for FAME II might be made in a vote on account," mentioned a source knowledgeable about the situation. They added that extending the current phase wouldn't require multiple approvals as needed for a completely new scheme. This extension aims to sustain the progress in the market during this interim period. Since general elections are scheduled for April-May next year, the upcoming budget will likely be a vote on account.

The move to extend FAME II showcases the government's commitment to supporting the EV sector, offering continuity and stability while awaiting the formulation of the next phase of incentives and support mechanisms for electric vehicle manufacturing.

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