Govt to Clear FAME-3 Scheme Within 1-2 Month

The government is gearing up to launch the third phase of the FAME scheme within the next two months. Union Minister of Heavy Industries H D Kumaraswamy revealed that efforts are ongoing to address the shortcomings of the previous phases and incorporate suggestions, including those from the Prime Minister’s Office, into the new phase. Kumaraswamy provided this update at an electric mobility conference organized by Assocham.

When asked about the timeline, the individual stated that the scheme would likely be cleared within one to two months. Kumaraswamy mentioned numerous suggestions are still being received and the plan is to consider and implement the best options moving forward.

Government’s Plans for the FAME-3 Scheme

The upcoming third phase of the FAME scheme will succeed the EMPS (Electric Mobility Promotion Scheme) 2024, initiated in April and is scheduled to conclude by the end of September.

“In 2019, the government launched the second phase of the FAME scheme with an initial budget of INR 10,000 crore for three years ending in 2022.” This was later extended until March 2024 with an additional budget of INR 1,500 crore. The scheme’s primary objective was to support the adoption of 10 lakh electric two-wheelers, 5 lakh electric three-wheelers, 55,000 electric passenger cars, and 7,000 electric buses. 

Previous Phases and Upcoming Changes

Sudhendu Sinha, Advisor at Niti Aayog, mentioned that the upcoming FAME-3 scheme has been developed based on the experiences and insights gained from the FAME-2 scheme, which was not the case for FAME-2.

Sinha added that the FAME scheme was a standalone trial in the initial phase. However, FAME-2 was a deliberate effort, and FAME-3 has been developed based on the learnings from FAME-2. Earlier the FAME-2 was focused solely on the demand parameter. FAME-3 will prioritize developing charging infrastructure and extend support to new vehicle segments.

There is a growing push for India to emerge as a significant player in EV manufacturing. Emphasis is being placed on factors such as product quality, supply chain management, competitive pricing, and efficient manufacturing processes.

Amitabh Kant, G20 Sherpa and former CEO of Niti Aayog, highlighted the imperative for substantial EV adoption. He underlined the policy focus on promoting battery manufacturing and increasing electrification in the country.