H D Kumaraswamy.
Credit: PTI File Photo
Reassuring electric vehicle makers that subsidies would continue to be provided for the growth of the sector, Union Heavy Industries Minister H D Kumaraswamy on Monday said that the Faster Adoption and Manufacturing of Electric (and Hybrid) vehicles - FAME-III – will be announced in two months.
Speaking at the sidelines of the annual session of Automotive Components Manufacturers Association (ACMA), Kumaraswamy, also said that the till the FAME-III is notified, subsidies for electric vehicles will continue through the government's Electric Mobility Promotion Scheme (EMPS), which will be extended by another two months.
The EMPS was launched in April and was extended till September 30 and it provides incentives to electric two-wheelers and three-wheelers,
On FAME III, he said whatever the lacuna seen in FAME II are sought to be corrected and its being worked out internally.
When asked how big would be the outlay for FAME III, Kumaraswamy said it will be announced in a "short period" without disclosing details.
He said the FAME III will see some modifications on FAME II, for which work is going on.
Addressing the gathering, the Minister also said that the auto components industry must reduce dependence on imports by embracing localisation.
Despite global challenges and rising logistics costs, the auto components industry thrived with exports increasing this fiscal year. It achieved a significant trade surplus of $ 300 million led by higher value addition and increased localisation. he said.
The Minister also said that the PLI (Production Linked Intensive) for the automobile and auto components industry, launched in 2021, attracted Rs 74,850 crore in proposed investments. “Of this, Rs 17,836 crore has been actually invested by March 2024. This has already generated 30,500 jobs,” he added.