Under the FAME-III program, MHI has proposed a substantial amount, ranging from ₹12,600 to 30,000 crore, to integrate alternative energy sources and innovative technology in order to expedite the adoption of electric vehicles (EVs).
With the goal of increasing the uptake of electric vehicles, the Ministry of Heavy Industries (MHI) presents three ideas for the FAME scheme’s third phase. The budgets for these projects, which range from ₹12,600 crore to over ₹30,000 crore, include plans to incorporate vehicles that run on biofuels and hydrogen, among other alternative energy sources.
The Ministry of Finance advises keeping the scheme’s budget in line with the second phase, nevertheless. The Department of Expenditure of the Finance Ministry has given MHI in-principle clearance for ₹10,000 crore for the FAME initiative.
Because the automobile industry and advanced chemistry cells already have production-linked incentive schemes in place, the Department of Expenditure is hesitant to commit more than ₹10,000 crore. In addition, the government unveils the ₹57,613 crore PM-eBus Sewa initiative, which funds 10,000 electric buses. A payment security fund of ₹4,126 crore is also established by MHI.
Stakeholders in the automobile industry are pushing for continuing assistance as the Electric Mobility Promotion Scheme 2024 (EMPS 2024) draws to an end and the Budget approaches next month.
With a budget of Rs 500 crore, EMPS 2024 intends to make it easier for over 400,000 electric two-wheelers (e2W) and three-wheelers (e3W) to be adopted by July 31. Industry executives are pushing for a new phase of the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) program or for the Ministry of Heavy Industries (MHI) to extend and develop EMPS.
The government has already introduced programmes worth over Rs 1 trillion in the overall budget, prioritising financial responsibility while making decisions. FAME was started in 2015 with a budget of roughly Rs 900 crore, and it was funded at approximately Rs 10,000 crore for its second phase, which ended in March.
The third phase of FAME, which might last up to two years and taper off incentives for highly penetrated categories like two- and three-wheelers, would concentrate on strengthening public mass transit and charging infrastructure.
Industry representatives claim that in order to maintain the momentum of EV adoption in India and bring local efforts in the EV sector into line with international norms, a budget surpassing Rs 30,000 crore will be required.
