FAME, the government’s flagship electric mobility adoption initiative, is expected to enter its third phase within the next one to two months, according to Union Heavy Industries Minister H D Kumaraswamy. The minister revealed on Wednesday that an inter-ministerial group is currently reviewing feedback and suggestions for the third phase of the Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicles (FAME) scheme.
The focus is on addressing the issues and shortcomings experienced in the first two phases of the program. The anticipated FAME 3 phase will serve as a replacement for the temporary Electric Mobility Promotion Scheme (EMPS) 2024, which is set to conclude in September of this year. The EMPS was established as a short-term solution, and FAME 3 is expected to provide a more comprehensive, long-term framework for promoting electric mobility across India.
Launched in 2019, the second phase of the FAME initiative came with an initial financial allocation of Rs 10,000 crore, intended to last for three years. However, this timeline was extended until March 2024, with the government allocating an additional Rs 1,500 crore. FAME 2 had an ambitious target to support the deployment of one million electric two-wheelers, 500,000 electric three-wheelers, 55,000 passenger electric cars, and 7,000 electric buses across the country.
Despite its high expectations, the program faced several hurdles, prompting the government to re-evaluate its approach as it prepares for the third phase. Speaking about the upcoming phase of the scheme, Kumaraswamy noted that a number of suggestions have been put forward to improve upon the previous versions of the FAME initiative.
“In FAME 1 and FAME 2, we encountered certain gaps and challenges. Our current focus is on addressing these shortcomings and making the necessary improvements. The Prime Minister’s Office (PMO) has also provided input, and our inter-ministerial team is working on incorporating those recommendations,” the minister said.
When asked about the expected timeline for the launch of FAME 3, Kumaraswamy expressed optimism that the proposal would be ready for approval within a month or two. “We believe the scheme will be cleared within the next month or two. We are carefully reviewing all the suggestions and recommendations to ensure the decisions we make are in the best interest of promoting electric mobility in a positive and impactful way,” he added.
In response to concerns about unsold inventory within the automobile sector, Kumaraswamy acknowledged that he had received several appeals from industry stakeholders. “We are considering the best possible ways to support the automobile industry and help strengthen it,” he added.
“We are working on strategies that will benefit both manufacturers and dealers as they navigate the evolving landscape of electric vehicles,” he told reporters during an Assocham event. As FAME 3 moves closer to finalization, it is expected to provide a more robust framework for electric vehicle adoption, addressing the gaps of the earlier phases while boosting the country’s transition to sustainable and eco-friendly transportation solutions.
