Budget 2024 To Exclude FAME III, Scheme To Launch In Near Future: HD Kumaraswamy

The minister said that the third phase of the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles scheme is in progress, however, it will not be a part of the upcoming Union Budget

Earlier, the Heavy Industries Ministry announced that the subsidies provided under the FAME II scheme would be applicable for e-vehicles sold till March 31, 2024 or till the availability of the funds, whichever is earlier.

Source : PTI

Union Minister H D Kumaraswamy on Tuesday said that the upcoming Budget 2024-25 will not include any the FAME III scheme. The Minister for Heavy Industries and Steel informed that the scheme is going to be implemented in the near future, however, it will not be featured in the Budget presentation next week. 

Speaking to the media during an event organised by the SIAM (Society of Indian Automobile Manufacturers), the minister said that the third phase of the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme is being worked on, however, the scheme would not be a part of the upcoming Union Budget, reported PTI.

“Already preparatory work is going on. All the several ministries have recommended how to implement the FAME III programme. In future, some months or some future days it is going to be implemented,” Kumaraswamy said.

Notably, earlier this year, the Heavy Industries Ministry announced that the subsidies provided under the second phase of the FAME scheme would be applicable for e-vehicles sold till March 31, 2024 or till the availability of the funds, whichever is earlier. The ministry added that the outlay for the programme was extended from Rs 10,000 crore to Rs 11,500 crore.

Commenting to queries on taxes on hybrid vehicles, the minister said the topic of reduction of taxes will be discussed with Prime Minister Narendra Modi and a decision will be taken under the leadership of the PM regarding the road ahead for the industry. 

Replying to whether his ministry proposed a relaxation of taxes on hybrid vehicles, the minister noted, “Let's see. Next week budget presentation is there.”

Regarding the promotion of electric vehicles and transformation of the Indian workforce accordingly, Kumaraswamy said, “India stands to gain significantly from embracing electric mobility. It is a journey that promises economic growth, environmental sustainability and enhanced energy security. Our workforce must be prepared to handle the unique challenges and opportunities in fulfilling India's ambitious goal of electric mobility.”