FAME-III To Be Launched In Two Months: Union Minister Kumaraswamy

The third iteration of the central government’s Faster Adoption & Manufacturing of Electric Vehicles (FAME) scheme, or the much-awaited FAME-III, will be rolled out within two months, union minister for heavy industries H. D. Kumaraswamy said.

Speaking at the National Conference on Electric Mobility, organised by ASSOCHAM, Kumaraswamy, said, “The government is unwaveringly committed to advancing India’s EV ecosystem with a focus on fostering local manufacturing and sustainable growth. The third iteration of the Faster Adoption & Manufacturing of Electric Vehicles (FAME) scheme will be rolled out within two months.” 

FAME-II, the previous demand incentive scheme for EVs which was launched in 2019, came to an end in April this year. While the EV industry was waiting for the Centre to extend the policy or introduce the FAME-III scheme, the expectations did not materialise.

However, the Ministry of Heavy Industries introduced the INR 500 Cr Electric Mobility Promotion Scheme (EMPS) 2024 earlier this year. It is a stopgap scheme aimed at helping the EV industry with demand subsidies before the launch of the FAME-III scheme.

While the EMPS was expected to end in July, it recently got another extension till September end. 

It is pertinent to note that FAME-II underwent massive turmoil last year as several players were found in violation of the localisation norms required to avail the subsidy. Several players were also fined crores of rupees for the violations, which led to months of mudslinging among the government and industry players.

Speaking during the conference on Wednesday (September 4), Kumaraswamy also reportedly said that the ministry has started receiving several suggestions for FAME-III, including from the Prime Minister’s Office. 

“The transition to electric mobility requires a skilled workforce and we are working closely with industry bodies to address the skill gap for a future ready workforce. As we move forward, the focus is now on accelerating adoption of EV across segments including heavy-duty trucks, strengthening the EV value chain, enhancing related infrastructure and policy boost to encourage innovation and investment in electric mobility,” said Kumaraswamy.

Amid changes in subsidies and uncertainty about the FAME scheme, Indian two-wheeler EV sales are also witnessing volatility. The total EV two-wheeler registrations fell to 88,473 units in August from over 1.07 Lakh units registered in July, as per Vahan data.