FAME III could be introduced in the upcoming Budget: Ministry of Heavy Industries

With the FAME II subsidy scheme coming to an end, a senior government official recently assured that the incentives for electric vehicles will continue beyond March 2024 under the FAME III subsidy scheme. The Indian government has been providing incentives under the FAME II scheme, with a budget of Rs 10,000 crore, in the push for electrifying public and shared transportation.

1. FAME III will focus on electrification of trucks
2. PLI-Auto Scheme has been extended by one year till FY2027-'28

FAME III, set to be implemented after FAME II expires, might not be as extensive, but will have a budget. "The government must assist the industry and encourage consumers to switch to zero-emission modes of transportation, so the demand incentives of the FAME scheme are likely to continue," said Dr Hanif Qureshi, additional secretary, Ministry of Heavy Industries. 

Speaking exclusively to our sister publication Autocar Professional, during the sidelines of the ARAI Symposium on International Automotive Technology (SIAT) 2024, he mentioned that FAME III will come into effect once FAME II concludes in March 2024. It will also focus on encouraging the use of electric trucks as part of the government’s efforts to reduce carbon emissions from large vehicle fleets.