FAME III for EVs: Government proposes Rs 40,000-50,000 crore outlay in draft

The government is working on a PLI scheme for components of EV batteries

The government has readied its first draft of FAME III, which comes with a proposed outlay of Rs 40,000-50,000 crore to support electric trucks, electric cycles and quadracycles, CNBC-TV18 reported.

The Centre is also working on two to three different models to support the electric vehicle (EV) industry over the next five years, sources told the channel.

FAME III’s support for electric trucks, electric cycles, and quadracycles will be in addition to electric cars, electric buses, electric three-wheelers, and electric two-wheelers, the sources added, with substantial allocation earmarked for electric buses.

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“The Centre is contemplating both demand and supply incentives for supporting EVs, and is working on two to three models to support the EV industry over five years,” they said.

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Further, the government is working on a PLI scheme for components of EV batteries, and may also bring in a PLI for niche battery technologies. They said the government is also likely to prioritise reuse and recycling of EV batteries.

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“The Heavy Industries Ministry, Finance Ministry, and Prime Minister’s Office will examine proposals before final approval. The government may soon announce plan to support EVs till 2030,” the sources added.