Union Minister HD Kumaraswamy announced on Tuesday that the government is developing the FAME III scheme to promote electric mobility, which is expected to be implemented soon. However, the third phase of the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme will not be included in the upcoming Union Budget, as the Minister for Heavy Industries and Steel stated during an event organized by the auto industry body SIAM.
“Preparatory work is already underway. Several ministries have recommended how to implement the FAME III program. It will be launched in the coming months or days,” Kumaraswamy said in response to questions about the auto industry’s demand for the FAME III scheme.
When asked if FAME III would be included in the budget, he replied in the negative.
Earlier this year, the heavy industries ministry declared that subsidies under the second phase of the FAME scheme would be accessible for e-vehicles sold until March 31, 2024, or until the allocated funds are exhausted, whichever comes first. The program’s budget was also increased from Rs 10,000 crore to Rs 11,500 crore.
On the topic of reducing taxes on hybrid vehicles, Kumaraswamy mentioned that the issue would be discussed under the leadership of Prime Minister Narendra Modi, who will determine the roadmap, with the finance ministry handling the specifics.
When asked if his ministry recommended a reduction of taxes on hybrid vehicles, he said, “Let’s see. Next week’s budget presentation will clarify.”
In response to a question about whether American electric carmaker Tesla has communicated its intention to invest in India under the new EV policy, he said there had been no discussions yet.
At an event addressing the readiness of India’s workforce for the EV sector, Kumaraswamy highlighted the significant benefits India stands to gain from embracing electric mobility, including economic growth, environmental sustainability, and enhanced energy security.
“Our workforce must be prepared to handle the unique challenges and opportunities in achieving India’s ambitious goal of electric mobility,” he emphasized.
