Budget 2024 may see FAME III be unveiled
India could unveil an expanded third phase of the incentive scheme for electric vehicles in the upcoming interim budget on February 1, enhancing it to support mass transport and alternative fuels, a top government official told ET.
The budget could set aside ₹10,000-12,000 crore for the third instalment of the Faster Adoption & Manufacturing of Electric Vehicles (FAME) scheme.
«FAME III will be focused on mass transport such as buses, and personal mobility for two-wheelers while also encouraging adoption of alternative fuel vehicles like hydrogen-powered ones,» said a ministry of heavy industries official.
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The scheme incentivises the sale of electric vehicles with components that are locally made as much as possible.
The new scheme will be much like the ongoing FAME II programme, which has already been tweaked to support a larger number of vehicle sales and ensure stricter scrutiny, a second official added.
The decision to launch FAME III follows demands from the industry to continue the programme since other support mechanisms such as the production-linked incentive (PLI) scheme have exclusionary conditions such as high minimum net worth norms.
The Centre had earmarked Rs 895 crore for FAME I, which was in force from 2015 to 2019. This allocation was significantly ramped up to Rs 10,000 crore in FAME II for 2019-24.
In May 2023, incentives under the FAME II programme were lowered
