FAME III scheme to be announced in Budget 2024: MHI
The Centre is extending its support for electric vehicles (EVs) beyond March 2024 with the FAME III subsidy scheme, said Dr. Hanif Qureshi, Additional Secretary of the Ministry of Heavy Industries. He believes that "the government must assist the industry and encourage consumers to switch to zero-emission modes of transportation," which is why the FAME incentives will continue. Finance Minister Nirmala Sitharaman is set to introduce FAME III in the Union Budget 2024.
Focus on electrification of trucks and ease of doing business
FAME III will prioritize promoting electric trucks to help lower carbon emissions from large vehicle fleets. Building on FAME II guidelines, the new scheme will make it easier for OEMs, component manufacturers, and other auto industry members to do business. The government approved the PLI-Auto Scheme on September 15, 2021, allocating Rs. 25,938 crore over five years. It has now been extended to end in FY2027-28 instead of FY2026-27.
Advanced Automotive Technology and zero-emission vehicles
The PLI-Auto Scheme's goal is to increase Advanced Automotive Technology (AAT) product manufacturing and encourage deep localization. It also hopes to aid in establishing a global supply chain for battery-backed EVs and hydrogen fuel cell-equipped vehicles. Mahindra, Ola Electric, and Tata Motors are among the three OEMs that have secured eligibility certifications under this scheme. Dr. Qureshi also noted that 23 other applicants are in various stages of the application procedure, and will receive eligibility certificates in the coming weeks.
