FAME-III scheme excluded from Budget 2024, set for near-future launch

Regarding tax reductions on hybrid vehicles, Union minister HD Kumaraswamy said Prime Minister Narendra Modi will take a call on the issue, with the finance ministry working on the roadmap ahead.

The third phase of the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme will not be included in the upcoming Union Budget, the minister for heavy industries and steel revealed to reporters at an event organised by the auto industry body SIAM.

However, the government is advancing the FAME-III scheme to promote electric mobility, with implementation likely in the near future, Union minister HD Kumaraswamy announced on July 16, reported PTI.

"Preparatory work is already underway. Various ministries have recommended strategies for implementing the FAME-III programme. It is expected to be rolled out in the coming months," Kumaraswamy stated in response to the auto industry's demand for the scheme.

Earlier this year, the heavy industries ministry announced that subsidies under the second phase of the FAME scheme would be available for e-vehicles sold until March 31, 2024, or until funds are exhausted. Additionally, the programme's outlay was increased from Rs 10,000 crore to Rs 11,500 crore.

Regarding tax reductions on hybrid vehicles, PTI reported, Kumaraswamy said Prime Minister Narendra Modi will take a call on the issue, with the finance ministry working on the roadmap ahead.

When asked if his ministry had recommended tax reductions on hybrid vehicles, he said, "Let's see. The budget presentation is next week." On whether American electric carmaker Tesla has communicated its intention to invest in India under the new EV policy, he stated that nothing has been discussed yet.

At an event focused on preparing an EV-ready workforce in India's automobile sector, Kumaraswamy highlighted the significant benefits of embracing electric mobility, including economic growth, environmental sustainability, and enhanced energy security.

"Our workforce must be prepared to handle the unique challenges and opportunities in fulfilling India's ambitious goal of electric mobility," he asserted.