FAME 3 in the works, to offer additional support to EVs
The government is actively working on the third phase of the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME 3) financial support scheme.
The upcoming phase is likely to support vehicles powered by alternative fuels, including hydrogen. This is a significant departure from the previous FAME schemes, which did not extend support to such vehicles.
Officials have revealed that FAME III aims to provide additional assistance to electric three-wheelers while introducing a scaled-down version for two-wheelers. The earlier phases of the scheme primarily focused on promoting electric vehicles, with electric two-wheelers being the primary beneficiaries.
Initially, these vehicles received a substantial 40 percent subsidy on their sale price, but it was gradually reduced to 15 percent in the final year of FAME II. This adjustment was made to ensure a wider distribution of the remaining funds among a larger number of beneficiaries.
However, electric three-wheelers and four-wheelers could not receive adequate support through FAME I or II. This was primarily due to the limitations of the schemes. Recognising this, the government is now planning to address these issues and providing a more comprehensive framework for the adoption of electric three-wheelers and other larger vehicles.
Industry executives have confirmed that the government approached them individually to gather information about the challenges faced during FAME II. Additionally, they were asked to recommend appropriate levels of incentives and domestic value addition that should be considered for inclusion in FAME III.