FAME 3: India’s Next Step in Electric Vehicle Revolution

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FAME 3 is likely to increase subsidies for electric buses purchased by State Transport Undertakings (STUs) compared to FAME 2, which incentivized the purchase of 7,000 electric buses.

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The Indian government’s flagship electric vehicle (EV) promotion program, FAME, is set for its third edition with a planned budget of Rs 10,000 crore. This comes as welcome news for the EV industry, aiming to accelerate electric vehicle adoption across the nation.

According to various media reports, this scheme is expected to roll out within the first 100 days of the new government taking charge next month. FAME 3 will primarily focus on two-wheeler and three-wheeler segments, along with government-owned electric buses.

The decision on incentives for electric cars, even those used for commercial purposes by taxi aggregators, is still pending.

Building on FAME 2 and EMPS

FAME 3 will succeed the recently concluded FAME 2 scheme, which ended in March 2024. Details of the new scheme will be presented to the Union Cabinet for approval shortly after the new government takes office.

To bridge the gap between FAME 2 and FAME 3, the government introduced the Electric Mobility Promotion Scheme (EMPS) as a temporary measure. Offering reduced subsidies compared to FAME 2, EMPS aimed to support electric two-wheeler and three-wheeler sales until July 2024.

What’s New with FAME 3?

EV manufacturers will need to go through a fresh certification process under FAME 3’s updated guidelines. The initial validity period for incentives is expected to be two years, a change from the five years offered under FAME 2.

FAME 3 is likely to increase subsidies for electric buses purchased by State Transport Undertakings (STUs) compared to FAME 2, which incentivized the purchase of 7,000 electric buses.

While the initial proposal excludes subsidies for all-electric cars, there’s a possibility of offering incentives for those priced below Rs 15 lakh, similar to FAME 2. The scheme may also extend support to hybrid cars that meet the price cap.

 

Credit: Unsplash

Source: ESG Times

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