Government Initiates Preparations for FAME III Scheme to Boost Electric Mobility

The government is preparing to launch the FAME III scheme to promote electric mobility, though it won't be included in the upcoming Union Budget. Union Minister HD Kumaraswamy shared that preparatory work is ongoing, with multiple ministries recommending implementation strategies. The scheme emphasizes economic growth, environmental sustainability, and energy security.

The government is making strides in launching the FAME III scheme aimed at promoting electric mobility, as confirmed by Union Minister HD Kumaraswamy on Tuesday.

The Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme's third phase will not be part of the upcoming Union Budget, stated the Minister for Heavy Industries and Steel, during an event organized by the auto industry body SIAM.

'Preparatory work is already underway. Several ministries have recommended strategies for implementing the FAME III programme. It is expected to be launched in the coming months,' Kumaraswamy said when addressing demands from the auto industry.

When asked if FAME III would be announced in the budget, Kumaraswamy responded negatively.

Earlier this year, the Heavy Industries Ministry announced that subsidies under the second phase of the FAME scheme would be available for e-vehicles sold until March 31, 2024, or until funds run out. Additionally, the outlay of the programme was raised from Rs 10,000 crore to Rs 11,500 crore.

Regarding tax reductions on hybrid vehicles, Kumaraswamy mentioned that the Prime Minister and the finance ministry would discuss and decide on the matter.

On queries about American electric carmaker Tesla's potential investment in India under the new EV policy, Kumaraswamy stated that nothing had been discussed yet.

Speaking at an event on preparing an EV-ready workforce in India's automobile sector, Kumaraswamy emphasized the economic, environmental, and energy security benefits of embracing electric mobility.

'Our workforce must be equipped to tackle the unique challenges and seize opportunities to achieve India's ambitious electric mobility goals,' he asserted.

(With inputs from agencies.)