HD Kumaraswamy stated that preparatory work for FAME 3 is underway. All seven ministries have submitted their recommendations for implementing the FAME program, which is expected to be implemented in the coming days.
Amid the ongoing uncertainty regarding the continuation of incentives for electric vehicles, HD Kumaraswamy, the new Minister of Heavy Industries, has confirmed that progress is being made on the third phase of the Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicles (FAME) scheme, which is nearing its final stages. However, he indicated that this scheme is unlikely to be included in the upcoming union budget.
While speaking to reporters at an industry event, Kumaraswamy disclosed that the preparatory work for FAME 3 is progressing. He mentioned that all seven ministries involved have submitted their recommendations for implementing the FAME program, and there are plans to roll it out soon.
Despite these developments, Kumaraswamy did not provide a specific timeline for the launch of the new phase. When asked about the inclusion of FAME 3 in the upcoming union budget, he responded that it is still in the final stages of preparation and will not be announced at that time.
The forthcoming FAME 3 will replace the temporary Electric Mobility Promotion Scheme (EMPS) 2024, which will conclude at the end of July. Initiated on April 1st for a four-month period, the EMPS scheme was introduced with a budget of Rs 500 crore following the expiration of the FAME 2 scheme on March 31st. It aims to maintain incentive continuity for electric two—and three-wheelers.
Initially launched in 2019, the FAME 2 scheme began with a budget of Rs 10,000 crore for three years ending in 2022 and was extended to March 2024 with an additional Rs 1,500 crore. Its primary goal was to support the adoption of 10 lakh electric two-wheelers, 5 lakh three-wheelers, 55,000 passenger cars, and 7,000 electric buses.
The industry has advocated for sustained government subsidies, particularly for new-age original equipment manufacturers (OEMs) focusing on two-wheelers and various industry bodies. These subsidies have been crucial in facilitating the initial adoption of electric vehicles in India.
Additionally, Kumaraswamy mentioned that discussions on reducing taxes for hybrid technology vehicles will take place under the leadership of Prime Minister Narendra Modi, with the finance ministry taking an active role in these deliberations.
