Government to clear FAME 3 scheme in 1-2 months: Union Heavy Industries Minister Mr. H D Kumaraswamy

Union Heavy Industries Minister Mr. H D Kumaraswamy announced that the government is expected to finalize the third phase of its flagship electric mobility adoption scheme, FAME, within 1 or 2 months. An inter-ministerial group is currently reviewing inputs and addressing issues from the first 2 phases of the Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicles (FAME) scheme. FAME 3 will replace the temporary Electric Mobility Promotion Scheme (EMPS) 2024, which is set to expire in September.

The second phase of FAME, launched in 2019, initially had an outlay of US$ 1.19 billion (Rs. 10,000 crore) for 3 years and was later extended to March 2024 with an additional US$ 178.7 billion (Rs. 1,500 crore). It aimed to support 1 million electric two-wheelers, 500,000 electric three-wheelers, 55,000 passenger cars, and 7,000 electric buses. He noted that various suggestions are being considered to address gaps identified in FAME 1 and FAME 2, with input from the Prime Minister Mr Narendra Modi’s Office. The minister indicated that FAME 3 will be presented to the Union Cabinet for approval once all suggestions are integrated. Regarding unsold inventory with automobile dealers, he mentioned that the government is working on strategies to support the industry effectively.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.