New Delhi: The government is expected to clear and roll out the third phase of its FAME (Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicle) scheme by the next two months, Union Minister of Heavy Industries H D Kumaraswamy said on Wednesday.
“On FAME-3, several suggestions are coming because in FAME-1, FAME-2 whatever lacunae is there, how to separate it, for that we are working. Even the PMO…has given some suggestions, for that our inter-ministerial group is working,” Kumaraswamy said, while speaking to the reporters on the sidelines of a conference organized by Assocham on electric mobility.
“I think within 1 month, 2 months, it will be cleared,” he said when asked about the timeline for the scheme.
“Several suggestions are coming even now, we have to adopt all those things, whatever is the best positive way, we have to take those decisions,” he added.
The third phase of the FAME scheme will replace the EMPS (Electric Mobility Promotion Scheme) 2024 which was rolled out in April this year, and is set to expire by the end of September.
In 2019, the government rolled out the second phase of the FAME scheme with an initial outlay of INR 10,000 crore for three years ending in 2022. Later, it was extended up to March 2024 with an additional outlay of INR 1,500 crore. The initial target of the scheme was to support 10 lakh electric two-wheelers, 5 lakh electric three-wheelers, 55,000 passenger cars, and 7,000 electric buses.
Talking about the upcoming scheme, Sudhendu Sinha, Advisor, Niti Aayog, said, FAME-3 scheme has been built on the experience and learnings gained from the FAME-2 scheme. However, the same was not the case for FAME-2.
“Initially, the FAME scheme in its first phase was standalone and kind of a trial. But FAME-2 was a conscious effort. And we have built FAME-3 based on the experience of FAME-2,” Sinha said at the event.
He added that while the FAME-2 was exclusively focused on the demand parameter, FAME-3 will be focused more on enabling the charging infrastructure.
Additionally, “new vehicle segments” will be supported in the FAME-3 scheme.
Stressing on the need for India to become an EV manufacturing nation, he said focus should be laid on parameters including quality in products, having the supply chain in control, bringing competitive pricing, and efficient manufacturing processes.
On Tuesday, Amitabh Kant, G20 Sherpa and former CEO of Niti Aayog also emphasized on the need for EV adoption in a “big way”. He said that the policy framework is to push for battery manufacturing, and more electrification in the country.
