FAME-III will be rolled out in next two months: Union minister Kumaraswamy

The Centre is planning to roll out the third phase of the Faster Adoption & Manufacturing of Electric Vehicles (FAME) scheme in the next two months, said H D Kumaraswamy, minister of heavy industries (MHI).

“The government is unwaveringly committed to advancing India’s EV ecosystem with a focus on fostering local manufacturing and sustainable growth. FAME-III will be rolled out within two months,” the minister said during an industry event in New Delhi.

The minister mentioned that the government is taking a comprehensive approach to boost the EV ecosystem. “I call upon all stakeholders to join hands towards making India a global leader in electric mobility and towards our vision of a ‘Viksit Bharat’,” Kumaraswamy added.

The FAME scheme, launched in 2015 with an initial outlay of approximately Rs 900 crore, was followed by FAME II, which had its outlay increased to Rs 10,000 crore. These schemes played a pivotal role in propelling the growth of the EV industry, driving sales from less than 7,000 units in 2014-15 (FY15) to 1.5 million units in FY24, constituting 6.8 per cent of all automobile sales. However, with the conclusion of FAME II in March 2024, the industry experienced a slowdown.

The government’s efforts to promote electric vehicles also led to an increase in the number of players in the industry, from 124 in FY15 to 731 in FY24.

Government data shows that under FAME I, approximately 278,000 pure EVs received support through demand incentives totalling Rs 343 crore. Under FAME II, more than 1.6 million vehicles were supported. The government had to increase the subsidy outlay from Rs 10,000 crore to Rs 11,500 crore to meet the demand until March 31, 2024.

From April, the government implemented the Electric Mobility Promotion Scheme (EMPS) 2024 with Rs 500 crore. However, the government has extended the EMPS by two months to the end of September. The scheme's outlay has increased from Rs 500 crore to Rs 778 crore for subsidising electric two- and three-wheelers.

The EV transition requires a skilled workforce, and the government is working closely with industry bodies to address the skill gap for a future-ready workforce, the minister noted.

“As we move forward, the focus is now on accelerating the adoption of EVs across segments, including heavy-duty trucks, strengthening the EV value chain, enhancing related infrastructure, and providing policy boosts to encourage innovation and investment in electric mobility,” he said.