The third phase Faster Adoption and Manufacturing of Hybrid and Electric Vehicles scheme (FAME-III), meant to encourage green mobility, is being finalised in consultation with the other ministries concerned, minister for steel and heavy industries HD Kumaraswamy, said on Tuesday.
“All preparatory works are going on,” he said, but indicated the scheme was unlikely to announced in the Budget FY25 next week.
FAME-III is designed to promote electric two- and three-wheelers, e-buses for nine cities with a population of over four million. It may also include incentives for e-trucks, and charging infrastructure.
The structure of FAME-III will broadly be the same as in earlier phases.
According to sources, the minimum outlay for FAME-III has been pegged at over Rs 9,500 crore, and it may have a duration of two years.
The predecessor of the scheme, FAME-II, which had an outlay of Rs 10,000 crore, was used to subsidise more than one million two-wheelers, about 150,000 three-wheelers, and 17,000 odd public transport four-wheelers.
Subsidies in the first two phases of scheme ranged between 15-25% across segments.
FE had reported that the Centre’s short-duration policy to promote EVs, the Electric Mobility Promotion Scheme (EMPS), is likely to be merged with the proposed third phase of FAME.
According to sources, the move will lead to the continuation of the government’s policy to promote EVs, and it will also streamline the processes and registration of products from one scheme to the next.
To this effect, sources cited that EMPS’ technical specifications for two- and three-wheelers will likely be retained in the proposed FAME-III.
The EMPS, which is valid for only four months (April–July 2024) with an outlay of Rs 500 crore, aims to subsidise electric two-wheeler, three-wheeler, and e-rickshaw purchases by consumers.
The EMPS will last until July 31st, 2024.
The first phase of FAME was launched in FY16 and it continued till FY19. The outlay of Rs 529 crore was fully utilised.
