In the Union Budget 2024, the revised FAME policy will verify companies’ manufacturing capacity to prevent fund misuse, addressing past shortcomings o
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The Indian government may unveil the much-anticipated FAME-III scheme in the upcoming full Budget 2024. This scheme, aimed at accelerating electric vehicle (EV) adoption, is expected to allocate a significant budget of ₹10,000 crore for electric two-wheelers, three-wheelers, and four-wheelers, according to reports.
India’s Faster Adoption and Manufacturing of Electric Vehicles (FAME) policy is a multi-phased scheme launched to propel the adoption and production of electric vehicles (EVs) nationwide. Introduced in 2015 with FAME-I, it aims to reduce reliance on fossil fuels and promote environmentally friendly transportation.
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The scheme offers subsidies for electric two-wheelers, three-wheelers, and even four-wheelers, making them more accessible to consumers. Additionally, FAME incentivizes domestic EV manufacturing by providing support to companies that invest in production capabilities.
What will the FAME III offer?
This revised policy will address past shortcomings by verifying the manufacturing capacity of companies applying for subsidies. This aims to prevent misuse of funds that plagued earlier versions of the FAME scheme.
The proposal for FAME-III is currently under review by the Prime Minister’s Office (PMO) after being submitted by the Ministry of Heavy Industries, which oversees the scheme. However, the final decision will likely be made closer to the budget presentation, considering the government’s fiscal situation.
The FAME initiative began in 2015 with a budget of ₹5,172 crore. FAME-II followed in 2019 with a ₹10,000 crore allocation and is set to expire on March 31, 2024.
To bridge the gap between FAME-II’s end and the potential launch of FAME-III, the government introduced the ₹500 crore Electric Mobility Promotion Scheme (EMPS) 2024 in March this year. This interim scheme focuses on subsidising electric two-wheelers and three-wheelers, offering incentives of up to ₹10,000 and ₹50,000 per vehicle, respectively. However, these subsidies are lower compared to those provided under FAME-II.
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The potential announcement of FAME-III with its larger budget and stricter regulations indicates the government’s continued commitment to promoting electric vehicle adoption in India. This could significantly boost the development of the country’s EV ecosystem and accelerate the shift towards green mobility.
First Published Date: 17 Jun 2024, 06:35 AM IST