The third edition of the central government’s EV incentive scheme, FAME (Faster Adoption and Manufacturing of Electric Vehicles), is expected to be rolled out soon, likely in July, after the new government takes charge. The proposed FAME III scheme has an outlay of Rs 10,000 crore.
FAME III Subsidy Scheme – What to Expect?
- The new FAME III scheme will continue to offer financial incentives to electric vehicles, including 2-wheelers, 3-wheelers and government-owned buses (state transport undertakings). They are expected to get the same incentives in FAME III as before.
- This matter is still being debated, but it appears that the new FAME policy will not include electric cars for both private and commercial buyers. In the first phase of the FAME policy, electric cars priced below Rs 15 lakh (ex-showroom) were subsidised to increase their accessibility. However, private EVs were excluded in FAME II, and this exclusion might continue in phase III as well.
- Reports suggest that the government may prioritise strong hybrid cars in the upcoming FAME III policy.
- Since it will be a new policy, all companies seeking incentives will be required to apply for fresh certification.
- The new FAME scheme is likely to be valid for two years only, unlike the FAME II, which lasted for five years. For reference, the FAME II scheme was initially planned for a period of three years, starting from April 2019. However, it was later extended till March 2024.
For those unaware, the FAME scheme was introduced to boost the local manufacturing and adoption of electric and hybrid vehicles by providing various incentives to end customers. It’s part of the government’s National Electric Mobility Mission Plan (NEMMP), aiming to enhance fuel security, offer affordable & eco-friendly transportation, and position Indian Auto Industry as a global manufacturing leader.
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