According to Minister of Heavy Industries HD Kumaraswamy, the government plans to complete the third phase of the Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicle (FAME 3 Scheme) initiative in one or two months.
“Several suggestions are coming for FAME 3 Scheme. Even Prime Minister’ Office has given some suggestions,” he said while speaking on the sidelines of ASSOCHAM’s National Conference on Electric Mobility today.
The interim Electric Mobility Promotion program (EMPS) 2024, which is scheduled to expire by the end of September, will be replaced by the third phase of the FAME program.
In order to maintain incentives for electric two- and three-wheelers, the EMPS initiative was introduced with a total investment of Rs 500 crore after the FAME 2 scheme expired on March 31. The scheme was initially valid for four months and later extended for a further two months.
Launched in 2019, the FAME 2 initiative required an initial investment of Rs 10,000 crore, to be paid back over three years, concluding in 2022. Later, it was extended to March 2024 for an extra expense of Rs 1,500 crore. Ten lakh electric two-wheelers, five lakh electric three-wheelers, five5,000 passenger cars, and seven thousand electric buses were the initial targets of the plan.
A number of modern OEMs, especially those that make two-wheelers, as well as trade associations have been pressuring the government to maintain subsidies. The country’s early adoption of electric vehicles has been greatly aided by the demand subsidy provided by the program.
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