Government to announce FAME-III scheme by mid-September: Report
What's the story
India is preparing to unveil the third phase of its successful electric vehicle (EV) subsidy program, known as 'Faster Adoption and Manufacturing of (Hybrid) Electric Vehicles in India' or FAME-III. The announcement is expected by mid-September, according to an NDTV Profit report citing insiders familiar with the matter. This initiative aims to accelerate the adoption of electric mobility in India, which ranks as the world's third-largest automotive market.
Collaboration
Stakeholders align on FAME-III, registration issues persist
Key stakeholders including the Union Ministry of Heavy Industries, Finance Ministry, NITI Aayog, and auto industry lobbies are reportedly in agreement regarding the FAME-III scheme. However, challenges remain in terms of electric vehicle registration and subsidy distribution. The total budget for this new phase of the initiative has not been disclosed yet by those involved in its planning.
Legacy
FAME-II's legacy and transition to new scheme
The previous phase, FAME-II, was operational for five years until fiscal 2024 with a total budget of ₹11,500 crore. After its conclusion on March 31, 2024, the scheme was extended for four months under the Electric Mobility Promotion Scheme 2024 which had a budgetary allocation of ₹500 crore. The FAME-II initiative has provided subsidies for over 13 lakh EVs from FY20-24.