The government unveils the FAME III Draft with Rs 40,000-50,000 Crore Budget to Boost Electric Vehicles
- ByStartupStory | August 11, 2023
The government has unveiled the initial draft of FAME III, which proposes a budget of Rs 40,000-50,000 crore to bolster electric trucks, electric cycles, and quadricycles, according to CNBC-TV18. Alongside this, the government is devising multiple models to bolster the electric vehicle (EV) sector in the coming five years, as per sources.
FAME III is set to extend its support beyond electric cars, buses, three-wheelers, and two-wheelers, with a significant portion allocated to electric buses. The government is exploring strategies that encompass both demand and supply incentives to promote EV adoption. Plans for a Production incentive (PLI) initiative aimed at EV battery components are also in progress, possibly followed by a PLI for specialized battery technologies. The government is also inclined to emphasize the recycling and reuse of EV batteries.
The Center is contemplating both demand and supply incentives for supporting EVs and is working on two to three models to support the EV industry over the next five years,” they said.
Proposals will undergo evaluation by the Ministries of Heavy Industries and Finance, along with the Prime Minister’s Office, prior to final endorsement. An announcement detailing support plans for EVs until 2030 is anticipated in the near future.
“The Heavy Industries Ministry, Finance Ministry, and Prime Minister’s Office will examine proposals before final approval. The government may soon announce a plan to support EVs until 2030,” the sources added.
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