Government proposes Rs 500 billion budget for FAME III initiative for EVs

Reportedly, the central government has drafted an initial blueprint for the third phase of the Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme.

FAME III envisions a budget ranging from Rs 400 billion to Rs 500 billion, estimated after consultations with industry and inter-ministerial dialogues. The government is working on both demand and supply incentives for EVs, encompassing multiple models to support the EV sector over a period of five years. The plan extends support to electric trucks, cycles, and quadracycles, augmenting existing assistance for electric cars, buses, three-wheelers, and two-wheelers. Notably, significant funds are reserved for electric buses. Further, the central government is working on a production linked incentive scheme for EV battery components.