Centre to announce ₹10,000cr FAME 3 EV scheme by August
The Indian government is preparing to launch the third phase of its electric vehicle (EV) incentive scheme, called FAME (Faster Adoption and Manufacturing of Electric Vehicles). A senior official has told Economic Times that the FAME 3 scheme, with a budget of around ₹10,000 crore, is expected to be rolled out within the first 100 days of the new government taking office next month. The primary focus of this phase will be electric two-wheelers, three-wheelers, and government buses.
FAME 3 to continue interim electric mobility promotion scheme
The FAME 3 scheme is designed to continue the Electric Mobility Promotion Scheme (EMPS), an interim plan introduced after the conclusion of FAME 2 on March 31. The EMPS was launched with a total allocation of ₹500 crore, to support sales of electric two-wheelers and three-wheelers until July. The upcoming FAME 3 will be a new scheme, requiring all companies seeking incentives on EV sales to apply for fresh certification.
FAME 3 to exclude subsidies for electric cars
The FAME 3 scheme is likely to exclude subsidies for electric cars, even those used for commercial operations. "Deliberations are underway on whether electric cars need any subsidy in the country," the official told Economic Times. However, if passenger cars are included in the scheme, hybrid cars may also receive support under FAME 3, subject to adhering to the price cap.
FAME 3 to increase subsidized electric buses
The Indian government had incentivized the purchase of 7,000 electric buses under FAME 2. The new scheme, FAME 3, is expected to increase the number of electric buses subsidized for purchase by State Transport Undertakings (STUs). The proposal being considered suggests that FAME 3 will initially be valid for sales made over a two-year period, unlike the five-year validity under FAME 2.
