MHI Evaluates Proposals For FAME 3.0 Scheme To Boost Electric Vehicle Adoption


(MENAFN- KNN India) New Delhi, Jun 17 (KNN) The Ministry of Heavy Industries (MHI) is considering three proposals for the next phase of the government's flagship scheme to accelerate electric vehicle adoption, according to knowledgeable sources.

The Faster Adoption and manufacturing of Hybrid and Electric vehicles (FAME) 3.0 scheme is expected to be announced in the Union Budget for the fiscal year 2024, reported BS.

One of the proposals under evaluation involves expanding the scope of the program to include vehicles powered by alternative energy sources such as hydrogen and biofuels, as per a senior government official.

The three proposals being deliberated carry projected budgets ranging from Rs 12,600 crore to over Rs 30,000 crore, sources informed.

While the MHI has received in-principle approval for an allocation of Rs 10,000 crore from the Department of Expenditure under the Ministry of Finance for the FAME scheme, industry stakeholders have submitted proposals seeking over Rs 2.3 lakh crore for the sector's development.

However, a senior official indicated that the finance ministry aims to maintain budgetary continuity with the previous phase.

The expenditure department's reluctance to allocate more than Rs 10,000 crore stems from the existence of two production-linked incentive (PLI) schemes benefiting players in the automotive and advanced cell chemistry domains, amounting to Rs 25,938 crore and Rs 18,100 crore, respectively.

Additionally, the government has introduced the PM e-Bus Sewa scheme with a Rs 57,613 crore budget to deploy 10,000 electric buses and has established a Rs 4,126 crore payment security fund.

"Any decision will be made considering the fiscal situation, as the government has already launched schemes with budgets totalling over ₹1 trillion," stated another official.

Queries sent to the Department of Expenditure and MHI remained unanswered at the time of publication.

The FAME initiative was launched in 2015 with an initial outlay of approximately Rs 900 crore, which was subsequently increased to around Rs 10,000 crore for the second phase in 2019.

FAME 2.0 concluded in March 2023 and was followed by the Electric Mobility Promotion Scheme 2024 (EMPS 2024) with a Rs 1,500 crore budget aimed at supporting around 400,000 electric two-wheelers and three-wheelers until July 31, 2023.

(KNN Bureau)

MENAFN17062024000155011030ID1108342398


KNN India

Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.