diff --git a/Makefile b/Makefile
index 85934430..781b8f2f 100644
--- a/Makefile
+++ b/Makefile
@@ -23,7 +23,7 @@ TEST_CREDENTIALS_JSON ?= $(TEST_CREDENTIALS_DIR)/credentials.json
 TEST_LOGANALYTICS_JSON ?= $(TEST_CREDENTIALS_DIR)/loganalytics.json
 export TEST_CREDENTIALS_JSON TEST_LOGANALYTICS_JSON TEST_AKS_CREDENTIALS_JSON
 
-VERSION ?= v1.6.1
+VERSION ?= v1.6.2
 REGISTRY ?= ghcr.io
 IMG_NAME ?= virtual-kubelet
 INIT_IMG_NAME ?= init-validation
@@ -35,7 +35,7 @@ E2E_CLUSTER_NAME := $(CLUSTER_NAME)
 OUTPUT_TYPE ?= type=docker
 BUILDPLATFORM ?= linux/amd64
 IMG_TAG ?= $(subst v,,$(VERSION))
-INIT_IMG_TAG ?= 0.2.0
+INIT_IMG_TAG ?= 0.3.0
 
 BUILD_DATE ?= $(shell date '+%Y-%m-%dT%H:%M:%S')
 VERSION_FLAGS := "-ldflags=-X main.buildVersion=$(IMG_TAG) -X main.buildTime=$(BUILD_DATE)"
diff --git a/docs/UPGRADE-README.md b/docs/UPGRADE-README.md
index f57adae4..4aa23a18 100644
--- a/docs/UPGRADE-README.md
+++ b/docs/UPGRADE-README.md
@@ -25,7 +25,7 @@ export CHART_NAME=virtual-kubelet-azure-aci-upgrade
 export VK_RELEASE=$CHART_NAME-$RELEASE_TAG
 export NODE_NAME=virtual-kubelet-aci-$RELEASE_TAG
 export CHART_URL=https://github.com/virtual-kubelet/azure-aci/raw/gh-pages/charts/$VK_RELEASE.tgz
-export INIT_IMG_TAG=v0.3.0
+export INIT_IMG_TAG=0.3.0
 export MASTER_URI=$(kubectl cluster-info | awk '/Kubernetes control plane/{print $7}' | sed "s,\x1B\[[0-9;]*[a-zA-Z],,g")
 export IMG_URL=mcr.microsoft.com
 export IMG_REPO=oss/virtual-kubelet/virtual-kubelet