FAME III corpus may jump to ₹30,000 cr
NEW DELHI : The central government may triple subsidy allocation for electric vehicle (EV) purchases in the third edition of the Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicles in India (FAME) programme amid the rising popularity of EVs in India. Allocation for the FAME III scheme may jump to around ₹30,000 crore from ₹10,000 crore earmarked for the current FAME II scheme, two people close to the matter said, adding that consultations have just started and the final allocation has not been decided. Charging infrastructure would also gain significant focus, with allocation at least doubling from the second phase, one of the two people said.
In FAME II, ₹1,000 crore was allocated to support EV charging infrastructure. “As charging infrastructure in the country has not picked up, the focus on the infra would get significant focus," the person added. The automobile industry has also put forward suggestions to the government during the initial consultations over the need for further fiscal support to the country’s EV ecosystem.
“The government is considering at present (whether to come up with FAME III). When we move towards it, the government will hold industry consultations. We are not there yet.
Some representations have been made," said another person, adding that industry consultations would be key to finalizing the scheme. The Centre is also preparing a concept note for the proposed FAME III scheme, which will be shared with stakeholders before the scheme is finalized. After finalizing the scheme and inter-ministerial consultations, the ministry of heavy industries will have to present a note on the new policy for cabinet approval.
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