The next round of incentive scheme for electric vehicles is in the works but they will not be a part of the budget, Union minister H.D. Kumaraswamy announced on Tuesday

“Preparatory work is already underway, with multiple ministries recommending implementation strategies for FAME III. It is expected to be launched in the coming months,” the minister for heavy industries and steel said. FAME is the acronym for incentive scheme Faster Adoption and Manufacturing of Hybrid and Electric
Vehicles.

Kumaraswamy was speaking at a meet of Society of Indian Automobile Manufacturers.

The minister replied in the negative when questioned about the possibility of FAME III being announced in the budget.

The market for green vehicles went into a flux last week with the UP government announcing tax sops on hybrids that will benefit some Maruti and Toyota models.

The previous EV incentive scheme (FAME II) ran into controversy after the Centre alleged two-wheelers were flouting rules for value addition and some others under-pricing their vehicles to get the subsidy.

Earlier this year, the heavy industries ministry declared that subsidies under the second phase of the FAME scheme would be available for electric vehicles sold until March 31, 2024, or until the allocated funds are exhausted.

When asked if his ministry had recommended tax cuts on hybrids, he responded: “Let’s see. The budget presentation is next week.”

Halwa time

Finance minister Nirmala Sitharaman on Tuesday participated in a traditional ‘halwa’ ceremony, marking the final stage for the preparation of the budget on July 23.

This event signifies the commencement of a strict “lock-in” period for officials involved in budget finalisation and printing.

The ceremony is a ritual in which traditional dessert ‘halwa’ is prepared and served to officials and staff members of the finance ministry who are involved in the preparation of the budget.