 "FAME-III scheme implementation in final stages, timeline remains unknown")
The third phase of the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme is nearing completion, though the exact timeline for its rollout remains undisclosed, reported the Economic Times (ET).
At a recent industry event, Union Minister for Heavy Industries HD Kumaraswamy shared that preparations for FAME III are almost finalised. The ministries have proposed recommendations on how to effectively implement the programme, the report said.
In 2015, the Ministry of Heavy Industries (MHI) introduced the FAME initiative to promote the adoption of electric and hybrid vehicles throughout India.
Objectives of Phase I
Phase I, which ran until March 2019 with a budget of Rs 895 crore, focused on technological development, demand generation, pilot projects, and charging infrastructure. Approximately 280,000 hybrid vehicles received demand incentives totaling around Rs 359 crore.
This programme facilitated the deployment of 425 electric and hybrid buses in various cities, supported by a government subsidy of around Rs 280 crore.
The ministry also approved around 520 charging stations with a budget of Rs 43 crore, reported ET.
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Technological advancements were supported with projects worth about Rs 158 crore, including the establishment of testing infrastructure and centres of excellence for advanced research in electrified transportation, battery engineering, and more. Institutions such as the Automotive Research Association of India (ARAI), IIT Madras, IIT Kanpur, Non-Ferrous Material Technology Development Centre (NFTDC), and Aligarh Muslim University (AMU) were among the beneficiaries.
Expansion of FAME in Phase II
Building on the insights from Phase I and consultations with stakeholders, the government launched Phase II in April 2019 with budgetary support of Rs 11,500 crore. This phase focuses on the electrification of public and shared transportation, offering demand incentives for 7,262 e-buses, 1,55,536 e-3 wheelers, 30,461 e-4 wheeler passenger cars, and 15,50,225 e-2 wheelers. Charging infrastructure development is also a key component, the report added.
As of July 2024, EV manufacturers have submitted claims for 16,71,606 electric vehicles, amounting to Rs 6,825 crore in subsidies. Additionally, 6,862 electric buses were approved for intra-city operations under FAME II, with 4,853 buses supplied by July 2024.
Recently, Bhupathi Raju Srinivasa Varma, the Minister of State for Heavy Industries and Steel, disclosed in a written statement to the Rajya Sabha that the ministry allocated Rs 800 crore as a capital subsidy to three Oil Marketing Companies (OMCs) under the Ministry of Petroleum and Natural Gas (MoPNG). This funding is designated for the creation of 7,432 public charging stations.
Out of this, Rs 560 crore has already been disbursed. In March 2024, an additional Rs 73.50 crore was sanctioned to OMCs for setting up or upgrading 980 public fast charging stations, with Rs 51.45 crore already released.