Centre to roll out FAME III scheme soon, to continue Electric Mobility Promotion Scheme

In good news for auto makers operating in the electric vehicle (EV) segment, the government said on Monday that it will continue its Electric Mobility Promotion Scheme (EMPS) proramme, an initiative aimed at encouraging the use of electric-powered vehicles in the country. Reiterating its intent to iron out any issues in the second phase of its Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme, part of its efforts to promote the adoption of electric and hybrid vehicles in the country, the government said it will launch FAME III (a third phase of the scheme) soon. 

India aims to push electric and hybrid vehicle sales as part of its efforts to reduce vehicular pollution as well as dependency on fossil fuels. 

Speaking at the 64th annual session of the Automotive Component Manufacturers Association of India, an industry body representing domestic auto parts makers, Heavy Industries Minister HD Kumaraswamy said that India continues to be on the path of economic transformation with the industry playing a pivotal role in helping it achieve its ambition of being self-reliant. 

With the government working closely, the industry has gained momentum despite headwinds like global challenges and rising logistics costs, the minister said.

More than 35,000 employment opportunities have been created in the industry through the government's Production-Linked Incentive (PLI) scheme, said Kumaraswamy. 

The Union Minister also highlighted that the PLI scheme for storage technology continues to support the segment.

The government initially launched its PLI programme in March 2020 and expanded its scope in the following months by covering more industries. 

The outcome of the outlay of Rs 11,500 crore for the FAME II scheme is already visible, said the minister. 

The government remains committed to providing every possible support to boost manufacturing, he added.