NEW DELHI: The Centre is expected to clear the much-anticipated third phase of the Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicle (FAME) scheme in the next one-two months, heavy industries minister H D Kumaraswamy said on Wednesday.
The assurance by the minister comes as the temporary Electric Mobility Promotion Scheme (EMPS) 2024 is set to expire by the end of this month. Kumaraswamy informed that an inter-ministerial group is working on the inputs received for the scheme, and efforts are being made to address the issues in the first two phases of the scheme.
“On FAME- III, several suggestions are coming because in FAME-I, FAME-II whatever lacunae is there, how to separate it, for that we are working. Even the PMO has given some suggestions, for that our inter-ministerial group is working…I think within 1 month, 2 months, it will be cleared,” Kumaraswamy said.
Several electric vehicle (EV) manufacturers and industry bodies have been pushing the government to introduce the third phase of FAME at the earliest owing to a dip in sales of battery-powered vehicles. Unlike the FAME-II scheme, subsidy under EMPS is limited to electric two- and three-wheelers.
Sources at the heavy industry ministry have indicated that there would not be big changes in the FAME 3 scheme and the subsidy criteria may remain the same compared to the second phase of the scheme.
“The scheme is in the final stage and it would most likely be out in the beginning of October,” said a senior official at the ministry.
FAME-II was introduced in 2019 with an initial outlay of Rs 10,000 crore for three years. However, later it was extended up to March 2024 with an additional outlay of Rs 1,500 crore. The scheme first came to support 10 lakh electric two-wheelers, five lakh electric three-wheelers, 55,000 passenger cars, and 7,000 electric buses.