The government of India is actively developing the FAME III scheme aimed at promoting electric mobility, with plans for implementation in the near future. This announcement was made by Union Minister HD Kumaraswamy on Tuesday. However, the new phase will not be part of the upcoming Union Budget. Speaking at an event organized by the auto industry body SIAM, Kumaraswamy highlighted ongoing preparatory work across multiple ministries to ensure effective implementation.
“Already preparatory work is going on. All the several ministries have recommended how to implement the FAME III programme. In future, some months or some future days it is going to be implemented,” he said when asked about the demand from the auto industry on FAME III scheme.
When queried about the possibility of FAME III being announced during the budget, Kumaraswamy confirmed it would not.
Earlier this year, the heavy industries ministry stated that subsidies under the second phase of the FAME scheme would be available for electric vehicles sold up until March 31, 2024, or until funds are exhausted, whichever comes first. The outlay of the program has been increased from INR 10,000 crore to INR 11,500 crore.
On the matter of reducing taxes on hybrid vehicles, Kumaraswamy mentioned that it would be a subject of discussion under the leadership of Prime Minister Narendra Modi. The decision on the roadmap will be made by the Prime Minister, with input from the finance ministry.
Asked whether his ministry has recommended a reduction of taxes on hybrid vehicles, he said, “Let’s see. Next week budget presentation is there.”
Concerning American electric carmaker Tesla and its potential investment in India under the new EV policy, Kumaraswamy reported that no communication has taken place yet on this matter.
During the event focused on creating an EV-ready workforce in India’s automobile sector, Kumaraswamy emphasized the significant benefits India stands to gain from adopting electric mobility. He pointed out that this transition promises economic growth, environmental sustainability, and increased energy security.
“Our workforce must be prepared to handle the unique challenges and opportunities in fulfilling India’s ambitious goal of electric mobility,” he asserted.
