FAME III Scheme to be Rolled Out Soon, Will Replace EMPS 2024

With the Electric Mobility Promotion Scheme (EMPS) 2024 set to expire by the end of September, Minister of Heavy Industries HD Kumaraswamy said some time ago, on the sidelines of ASSOCHAM's National Conference on Electric Mobility, 'The government is expected to finalise the third phase of its flagship electric mobility adoption scheme FAME in a month or two'. Upon launch, the third phase of the Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicle (FAME) scheme will replace the temporary EMPS 2024. 

Kumaraswamy added, 'Several suggestions are coming because in FAME 1, FAME 2 whatever lacunae is there, how to separate it, for that we are working. Even the PMO...has given some suggestions, for that our inter-ministerial group is working'. To a question on the launch timeline of FAME III, the Minister said, I think within 1 month, 2 months, it will be cleared.' 

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To give you a brief background, the second phase of FAME was rolled out in 2019 with an initial outlay of Rs 10,000 crore for three years expiring in 2022 but was later extended until March 2024 with an additional outlay of Rs 1,500 crore. The scheme was originally meant to support 10 lakh electric two-wheelers, 5 lakh electric three-wheelers, 55,000 passenger cars, and 7,000 electric buses.

The EMPS 2024, implemented after FAME II expired in March 2024, was originally valid for four months – from April 1 to July 31, 2024. However, it was extended for two more months (until September). The scheme applies mainly to those electric two- and three-wheelers registered for commercial use, in addition to the privately or corporate-owned registered electric two-wheelers. Launched with a total outlay of Rs 500 crore, the EMPS 2024 is aimed to support 3.72 lakh electric vehicles, including 3.33 lakh two-wheelers and 38,828 three-wheelers. The three-wheelers include registered e-rickshaws and e-carts, and three-wheelers in the L5 category. 

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In a couple of months, FAME III is expected to replace the ongoing EMPS scheme – the budget of which was enhanced by Rs 778 crore. While not confirmed, market reports suggest that FAME III could come with a total outlay of Rs 2,000 crore for the development of electric mobility infrastructure, including charging stations.