The government is set to unveil the third phase of its electric vehicle (EV) promotion scheme, FAME III, soon, Union Minister of Heavy Industries H.D. Kumaraswamy announced on Tuesday. However, the scheme will not be part of the upcoming Budget.
The previous FAME II scheme, which concluded in March, had a hefty ₹11,500 crore outlay. Compared to this, FAME III is expected to be smaller. However the auto industry is hopeful for continued incentives of ₹10,000 per electric vehicle. A ₹2,000 crore allocation for charging infrastructure development is being considered.
The government aims for electric vehicles to comprise 30% of total vehicle sales by 2030, aligning with India’s net-zero emissions target for 2070. Despite progress, the minister acknowledged uneven growth, with electric three-wheelers far outpacing electric cars in adoption.
The government is expanding the Automotive Mission Plan to include a skilling component, to address this issue. This will ensure the workforce is equipped for the EV sector, addressing a projected shortage of 30,000 employees annually. The industry requires a ₹13,500 crore investment in skilling and employment, according to a Deloitte report.
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