FAME-III EV Subsidy Scheme Likely By Mid-September In Festive Boost For EVs

India is likely to announce by mid-September the third iteration of a successful EV subsidy scheme, which stepped up adoption of electric mobility in the world's third-largest automotive market.

The government-backed ‘Faster Adoption and Manufacturing of (Hybrid) Electric Vehicles in India’ is all set to make a return for a third time, people with knowledge of the matter told NDTV Profit. They did not disclose the total outlay of the scheme.

All stakeholders—including the Union Ministry of Heavy Industries, Finance Ministry, NITI Aayog, as well as auto industry lobbies—are said to be more or less on the same page. That said, a key bottleneck persists on the registration of electric vehicles and dissemination of subsidies, the people cited above said.

The FAME-II scheme, which lasted for five years through Fiscal 2024, had a total outlay of Rs 11,500. After its expiry on March 31, 2024, the scheme was extended for four months under the Electric Mobility Promotion Scheme 2024 with a budgetary outlay of Rs 500 crore.

In all, the FAME-II scheme has subsidised 13,21,800 EVs in FY20-24.