FAME-III subsidies to be announced within next two months says Ministry of Heavy Industries

FAME-III subsidies soon: The government is expected to finalise the third edition of the subsidies for hybrid and electric vehicles (EVs) in India under the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME). within the next two months. HD Kumaraswamy, Minister of Heavy Industries mentioned the upcoming FAME-III scheme at the ASSOCHAM’s National Conference on Electric Mobility.

The minister said, " We are receiving numerous suggestions for FAME 3, including some from the Prime Minister’s Office.”

He highlighted that an inter-ministerial group is also working on the inputs that are received for the scheme. Efforts are underway to address the difficulties raised in the first two phases of the Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicle (FAME) plan.

The planned FAME 3 will replace the temporary Electric Mobility Promotion Scheme (EMPS) 2024. The EMPS scheme will expire in September 2024.

2019 witnessed the rollout of the second phase of the FAME scheme with an initial outlay of Rs 10,000 crore for three years. It was then extended till March 2024 with an additional cost of Rs 1,500 crore.

Initially, the government's effort aimed to aid 10 lakh electric two-wheelers, 5 lakh electric three-wheelers, 55,000 passenger automobiles, and 7,000 electric buses.

"On FAME 3, several suggestions are coming because in FAME 1, FAME 2 whatever lacunae is there, how to separate it, for that we are working. Even the PMO...has given some suggestions, for that our inter-ministerial group is working," Kumaraswamy said.

When the minister was Asked about the timeline for FAME 3, he said, "I think within 1 month, 2 months, it will be cleared".

Whether the updated FAME 3 scheme proposal will be sent to the Union Cabinet seeking approval in a month or two, the minister highlighted that several suggestions have been received, and we have to adopt all those things, whatever is the best, positive way, we have to take those decisions.

When Kumaraswamy was asked about the unsold inventory with automobile dealers and players, the minister expressed that he has received several requests from the automobile industry.

(with PTI inputs)