Modi 3.0 may speed up EV growth with Rs 10,000-cr FAME-III scheme in budget: Report

The FAME scheme is a government subsidy scheme under the National Electric Mobility Mission Plan (NEMMP).

The government may introduce a third iteration of the Faster Adoption & Manufacturing of Electric Vehicles (FAME) scheme in the Budget with an outlay of Rs 10,000 crore to accelerate the sale of electric vehicles, the Economic Times reported.

Two, three, and four-wheeler electric vehicles may get support from the FAME-III scheme, the report added.

Moneycontrol couldn't independently verify the report.

The government had reduced the budgetary allocation for the FAME scheme by nearly 44 percent to Rs 2,671 crore for FY25 in the interim budget presented in February 2024.

The Ministry of Heavy Industries was earlier allocated a Rs 5,127-crore budget for the fiscal 2023-24, marking the highest allocation since the Rs 10,000-crore FAME scheme was rolled out in 2019.

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“As India moves towards its net-zero emission target by 2070, the government will work towards expanding and strengthening the EV ecosystem as well as develop the charging infrastructure," Finance Minister Nirmala Sitharaman said in her Interim Budget 2024 speech on February 1.

The FAME scheme is a government subsidy scheme under the National Electric Mobility Mission Plan (NEMMP).

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As per a report by Counterpoint Research, electric vehicle (EV) sales in India is projected to surge 66 percent this year due to state subsidies and development of supporting infrastructure. With this growth, EVs will constitute around 4 percent of total PV market by 2024-end, it added.