FAME-III To Be Introduced In Upcoming Budget

Now that the new Government of India has been formed, it will be working on introducing the third phase of its EV adoption incentive scheme – FAME-III (Faster Adoption and Manufacturing of Electric Vehicles In India). 

The new scheme will replace the Electric Mobility Promotion Scheme (EMPS) that was introduced temporarily due to the elections. It had a ₹500 crore outlay and will expire on July 31. Unlike the EMPS scheme, which was limited to only two and three-wheelers, the new FAME-III subsidy scheme will have an outlay of ₹10,000 crore and will cover all two-, three-, and four-wheelers. 

The first FAME scheme was introduced in 2015 with a budgetary outlay of ₹5,172 crore. This was followed by the FAME-II scheme that was announced in 2019 with a budgetary allocation of ₹10,000 crore and it continued till March 31, 2024. 

The FAME-III subsidy will be introduced with the full budget introduced in the parliament in July. The proposed policy will also mandate the verification of the installed manufacturing capacity of companies seeking subsidy after instances of abuse were reported with earlier iterations. That led to the disqualification of several manufacturers, like Hero Electric, Okaya, etc.