"FAME-III Implementation Imminent, Final Plan Ready: HD Kumaraswamy"

Union Minister for Heavy Industries HD Kumaraswamy announced on Tuesday that the Centre is gearing up to launch the third phase of its flagship Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme in the near future. Speaking at an event organized by automobile industry body SIAM, Kumaraswamy highlighted that preparatory work is already underway, with all seven line ministries having recommended strategies for FAME-III implementation.

"In the future, in some months or days, we will implement it," Kumaraswamy stated, indicating the imminent rollout of FAME-III. When asked if FAME-III would feature in the upcoming Union Budget, he clarified, "No no, it is actually in the final stages."

The second phase of the Rs 11,500-crore FAME scheme concluded on March 31, having incentivized more than 1.6 million electric vehicles since its inception in April 2019.

Regarding discussions on reducing taxes for hybrid vehicles, Kumaraswamy mentioned that decisions in this regard would be taken under the leadership of Prime Minister Narendra Modi, with inputs from the finance ministry.

He also addressed queries about Tesla's potential investment in India under the new EV policy, stating that no discussions have taken place yet on this matter.

Business Standard had reported in June that the Ministry for Heavy Industries has proposed three models for FAME-III, with budget estimates ranging from Rs 12,600 crore to over Rs 30,000 crore. The Finance Ministry's Department of Expenditure has provisionally approved Rs 10,000 crore for the scheme.

FAME was initially launched in 2015 with a budget of about Rs 900 crore, subsequently increased to approximately Rs 10,000 crore for its second phase in 2019, and further revised to Rs 11,500 crore due to high demand. This was followed by the Electric Mobility Promotion Scheme 2024 (EMPS 2024) with a Rs 500 crore outlay, aimed at supporting electric two-wheelers (e2W) and three-wheelers (e3W) until July 31.

BS