The Centre is planning to implement the third phase of the Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme in the next two months, said HD Kumaraswamy, minister for major heavy industries (MHI).
“The government is firmly committed to advancing India’s EV ecosystem with a focus on fostering local manufacturing and sustainable growth. FAME-III will be implemented in two months,” the minister said during an industry event in New Delhi.
The minister mentioned that the government is taking a holistic approach to boost the EV ecosystem. “I appeal to all stakeholders to join hands to make India a global leader in electric mobility and to realise our vision of a ‘Viksit Bharat’,” Kumaraswamy added.
The FAME programme, launched in 2015 with an initial investment of about Rs 900 crore, was followed by the FAME II programme, the investment for which was increased to Rs 10,000 crore. These programmes played a pivotal role in driving the growth of the EV industry, boosting sales from less than 7,000 units in 2014-15 (FY15) to 1.5 million units by FY24, constituting 6.8 per cent of all car sales. However, with the conclusion of the FAME II programme in March 2024, the industry has seen 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 fiscal year 2015 to 731 in fiscal year 2024.
Government data shows that under FAME I, around 278,000 pure electric vehicles were supported through demand incentives totalling Rs 343 crore. Under FAME II, over 1.6 million vehicles were supported. The government had to increase the subsidy disbursement from Rs 10,000 crore to Rs 11,500 crore to meet the demand till March 31, 2024.
Starting from April, the government had implemented the Electric Mobility Promotion Scheme (EMPS) 2024 with Rs 500 crore. However, the government has extended the EMPS by two months till the end of September. The outlay under the scheme has increased from Rs 500 crore to Rs 778 crore to subsidise electric two-wheelers and three-wheelers.
The transition to electric vehicles requires a skilled workforce, and the government is working closely with industry bodies to address the skills gap for a future-ready workforce, the minister noted.
“As we move forward, the focus now is on accelerating the adoption of electric vehicles across all segments, including heavy trucks, strengthening the EV value chain, improving related infrastructure, and providing policy impetus to encourage innovation and investment in e-mobility,” he said.
First published: September 4, 2024 | 20:02 IS
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