FAME-3 may be unveiled at full Budget 2024 to be held next month; Rs 10,000-cr outlay may be on cards

The Centre may roll out the third edition of Faster Adoption & Manufacturing of Electric Vehicles (FAME) scheme in the full Budget 2024, which is to be tabled next month. 

Electric vehicles, ranging from two, three, and four-wheelers, are expected to get a support of about Rs 10,000 crore, the Economic Times reported on Friday.

The new policy will verify companies' manufacturing capacity when applying for subsidies, addressing past misuse problems in earlier versions. 

The heavy industries ministry, which administers the scheme, has already sent a plan for vetting to the Prime Minister’s Office (PMO), a senior official told ET. 

A final call on the FAME -III proposal will be discussed closer to the budget, keeping the fiscal situation in view, another official said.

The FAME initiative was originally introduced in 2015 with an allocated budget of Rs 5,172 crore. Subsequently, the FAME-II program commenced in 2019, supported by a budgetary provision of Rs 10,000 crore, and is set to continue until March 31, 2024.

After FAME-II program got over,  the government announced the launch of the Rs 500 crore Electric Mobility Promotion Scheme (EMPS) 2024 to subsidize two and three-wheelers in March of this year.

According to the Ministry of Heavy Industries, the EMPS scheme is designed to accelerate the adoption of electric two-wheelers (e-2W) and electric three-wheelers (e-3W—including registered e-rickshaws, e-carts, and L5 vehicles), thereby providing a substantial boost to green mobility initiatives and aiding in the development of the country's electric vehicle (EV) manufacturing ecosystem.

The scheme offers incentives amounting up to Rs 10,000 per electric two-wheeler and up to Rs 50,000 per electric three-wheeler. However, it should be noted that these subsidies have been significantly reduced compared to what was previously provided under FAME-II.