The Modi 3.0 government is expected to finalise the third edition of the Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicle (FAME) scheme in two months, said Minister of Heavy Industries HD Kumaraswamy on September 4.
“The government is unwaveringly committed to advancing India’s EV ecosystem with a focus on fostering local manufacturing and sustainable growth. The third iteration of the FAME scheme will be rolled out within two months. We are taking a comprehensive approach to boost EV ecosystem and I call upon all stakeholders to join hands towards making India a global leader in electric mobility and towards our vision of a ‘Viksit Bharat',” said Kumaraswamy at the National Conference on Electric Mobility organised by ASSOCHAM.
“In July 2024, Domestic sales of three-wheelers surged to 59,073 units, reflecting a 5.1 percent YoY growth and two-wheeler sales touched 14,41,694 units marking a significant 12.5 percent year-on-year growth. The transition to electric mobility requires a skilled workforce and we are working closely with industry bodies to address the skill gap for a future ready workforce. As we move forward, the focus is now on accelerating adoption of EV across segments including heavy-duty trucks, strengthening the EV value chain, enhancing related infrastructure and policy boost to encourage innovation and investment in electric mobility,” he added.
Earlier this month, sources told CNBC-TV18 that the government is considering a proposal for an outlay of Rs 11,500 crore and it may stagger or reduce incentives on each category over the two-year period.
The scheme is likely to have incentives for electric buses, three-wheelers and two-wheelers. New categories like electric trucks, tractors, mining equipment and charging infrastructure could also be included, the channel reported.
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.
The FAME scheme is a government subsidy scheme under the National Electric Mobility Mission Plan (NEMMP).
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.
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.
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