- By Divanshi Sharma
- Mon, 17 Jun 2024 02:25 PM (IST)
- Source:JND
The Indian government is likely to announce the much-anticipated FAME-III scheme in the upcoming Union Budget 2024. Aimed at boosting electric vehicle (EV) adoption, the scheme is expected to allocate Rs 10,000 crore for electric two-wheelers, three-wheelers and four-wheelers. The Faster Adoption and Manufacturing of Electric Vehicles (FAME) policy, launched in 2015, is designed to encourage the use and production of EVs across India. The first phase, FAME-I, focused on reducing dependence on fossil fuels and promoting eco-friendly transportation.
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FAME offers subsidies to make electric two-wheelers, three-wheelers and four-wheelers more affordable for consumers. It also supports domestic EV manufacturing by helping companies build production facilities in India. FAME began in 2015 with a budget of Rs 5,172 crore. FAME-II followed in 2019 with Rs 10,000 crore and expired on March 31, 2024. To fill the gap between FAME-II's end and the potential launch of FAME-III, the government introduced the Rs 500 crore Electric Mobility Promotion Scheme (EMPS) 2024 in March this year. This interim scheme offers subsidies for electric two-wheelers and three-wheelers, with incentives of up to Rs 10,000 and Rs 50,000 per vehicle, respectively, which are lower than those under FAME-II.
The new FAME-III policy aims to address issues from previous versions by verifying the manufacturing capacity of companies applying for subsidies, ensuring funds are used correctly. The proposal for FAME-III is currently being reviewed by the Prime Minister's Office (PMO) after being submitted by the Ministry of Heavy Industries, which oversees the scheme. The final decision will likely be made closer to the budget presentation, taking into account the government's financial situation.
The potential announcement of FAME-III, with a larger budget and stricter regulations, shows the government's continued commitment to promoting EV adoption in India. This move could significantly advance the country's EV ecosystem and accelerate the shift towards green mobility.