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

    Benefits available to EVs to be carried forward post expiration of FAME II in March 2024.

    Published On Jan 29, 2024 02:40:00 PM


    Bajaj Chetak price, FAME subsidy extension for EVs.
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    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. 

    Also See: 

    Ather CEO says the subsidy is needed for a few more years

    A senior government official also affirmed that FAME III will ‘undoubtedly be introduced in the upcoming Union Budget 2024 by Finance Minister, Sitharaman'. "The FAME 3 scheme will carry on the guidelines of FAME 2, but will include certain measures that will improve the ease of doing business for OEMs, component makers, and other auto industry members," the official added. 

    The Union Cabinet approved the PLI-Auto Scheme on September 15, 2021, allocating Rs 25,938 crore for five years. The scheme has now been extended by a year ending in FY2027-'28 instead of FY2026-'27. The initiative aims to boost Advanced Automotive Technology (AAT) product manufacturing, promote deep localisation for the same and establish a global supply chain for Zero Emission Vehicles (ZEVs) like battery-powered electric vehicles and hydrogen fuel cell-equipped vehicles. Mahindra & Mahindra, Tata Motors, and Ola Electric are among the three OEMs securing eligibility certifications under this scheme. Dr Qureshi also mentioned that 23 other applicants are in different stages of the application process and will receive eligibility certificates in the coming weeks as well. 

    Also See: 

    Ather 450X vs Ola S1 Pro vs TVS iQube S vs Bajaj Chetak EV scooter comparison

    Multiple E2W brands asked to refund the incentives due to non-compliance of FAME

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