Government to implement FAME III soon
ECONOMY & POLICY

Government to implement FAME III soon

The government is actively developing the third phase of the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme, with plans to implement it in the near future, announced Union Minister HD Kumaraswamy. However, FAME III will not be featured in the upcoming Union Budget, the Minister for Heavy Industries and Steel clarified during an event organised by the auto industry body SIAM.

"Preparatory work is already underway. Several ministries have recommended implementation strategies for the FAME III program. It is expected to be implemented in the coming months," Kumaraswamy said when asked about the auto industry's demand for the FAME III scheme.

When asked if FAME III would be announced in the budget, he responded negatively. Earlier this year, the heavy industries ministry extended subsidies under the second phase of the FAME scheme for e-vehicles sold until March 31, 2024, or until funds are depleted, while increasing the program's outlay from Rs 100 billion to Rs 115 billion.

Regarding tax reductions on hybrid vehicles, Kumaraswamy mentioned that the issue would be discussed under the leadership of Prime Minister Narendra Modi, with the finance ministry working on the roadmap. When asked if his ministry had recommended tax reductions on hybrid vehicles, said, "The budget presentation is next week."

On whether American electric carmaker Tesla has communicated its intention to invest in India under the new EV policy, he stated that no discussions have taken place yet.

Addressing the event on preparing India's workforce for the EV sector, Kumaraswamy emphasised the significant benefits of embracing electric mobility for India's economic growth, environmental sustainability, and 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. (Source:ET)

The government is actively developing the third phase of the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme, with plans to implement it in the near future, announced Union Minister HD Kumaraswamy. However, FAME III will not be featured in the upcoming Union Budget, the Minister for Heavy Industries and Steel clarified during an event organised by the auto industry body SIAM. Preparatory work is already underway. Several ministries have recommended implementation strategies for the FAME III program. It is expected to be implemented in the coming months, Kumaraswamy said when asked about the auto industry's demand for the FAME III scheme. When asked if FAME III would be announced in the budget, he responded negatively. Earlier this year, the heavy industries ministry extended subsidies under the second phase of the FAME scheme for e-vehicles sold until March 31, 2024, or until funds are depleted, while increasing the program's outlay from Rs 100 billion to Rs 115 billion. Regarding tax reductions on hybrid vehicles, Kumaraswamy mentioned that the issue would be discussed under the leadership of Prime Minister Narendra Modi, with the finance ministry working on the roadmap. When asked if his ministry had recommended tax reductions on hybrid vehicles, said, The budget presentation is next week. On whether American electric carmaker Tesla has communicated its intention to invest in India under the new EV policy, he stated that no discussions have taken place yet. Addressing the event on preparing India's workforce for the EV sector, Kumaraswamy emphasised the significant benefits of embracing electric mobility for India's economic growth, environmental sustainability, and 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. (Source:ET)

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