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India Unveils FAME III To Propel Electric Vehicle Adoption: Enhanced Subsidies
India's electric vehicle (EV) subsidy program, known as FAME (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles), is set for a revamp. The government plans to introduce a revised version, FAME III, after the new administration takes office following the ongoing general elections.
FAME III will place a strong emphasis on promoting EVs in public transportation, two-wheelers, and three-wheelers. Sources indicate that the government has allocated ₹10,000 crore for this scheme. The revised program is expected to prioritize electric buses, offering substantial subsidies to encourage their adoption.
Additionally, FAME III is likely to provide financial support for two-wheelers and three-wheelers with subsidies of around ₹10,000 and ₹50,000, respectively. These subsidies will be based on the battery capacity of the vehicles, with ₹5,000 per kWh being offered as support.
To be eligible for these subsidies, vehicle manufacturers will need to obtain a new certification. Details regarding this certification process will be revealed later. Under the previous FAME II scheme, a total of 3,72,215 cars, 3,33,387 two-wheelers, and 38,828 three-wheelers were produced and sold with government subsidies.
Impact on Electric Buses
The previous FAME scheme also supported the production of 7,000 electric buses. FAME III is expected to further accelerate the adoption of electric buses in India. This could lead to a decline in the prices of EVs sold in the country.
Government’s Commitment
The government's commitment to promoting EVs is evident from the substantial allocation for FAME III. By focusing on public transport and smaller vehicles, the scheme aims to make EVs more accessible and affordable for the general public.
Future Prospects
The official details of FAME III are yet to be announced. However, the anticipated changes suggest a significant push towards cleaner transportation options in India. The revised scheme is expected to lead to a decrease in the prices of EVs in India.
The introduction of FAME III marks a significant step in India's journey towards sustainable transportation. With substantial subsidies and a focus on public transport and smaller vehicles, the scheme aims to make EVs more accessible and affordable for all.
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