The Indian government is currently in the process of developing the third phase of the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) financial support scheme, known as FAME III. This upcoming phase is expected to introduce support for vehicles powered by alternative fuels, including hydrogen. This marks a significant shift from the previous FAME schemes, which primarily focused on promoting electric vehicles without including support for alternative fuel-powered vehicles.
According to government officials, FAME III aims to provide additional assistance specifically targeted towards electric three-wheelers, while also introducing a scaled-down version of the scheme for two-wheelers. In the earlier phases of the FAME scheme, electric two-wheelers were the primary beneficiaries, receiving substantial subsidies on their sale prices. However, these subsidies gradually decreased over time, from 40 percent initially to 15 percent in the final year of FAME II. The reduction in subsidies was implemented to ensure a more equitable distribution of funds among a larger number of beneficiaries.
Unfortunately, electric three-wheelers and four-wheelers did not receive adequate support under the previous FAME schemes due to certain limitations. Recognizing this issue, the government is now focused on addressing these challenges and establishing a more comprehensive framework to facilitate the adoption of electric three-wheelers and larger electric vehicles.
To gather insights and feedback from industry stakeholders, the government has individually approached industry executives to understand the challenges faced during FAME II. These discussions aim to gather valuable information and recommendations regarding appropriate levels of incentives and domestic value addition that should be considered for inclusion in FAME III.
The introduction of support for alternative fuel vehicles, such as hydrogen-powered vehicles, in FAME III demonstrates the government’s commitment to promoting a diverse range of sustainable mobility solutions. By expanding the scope of the FAME scheme, the government aims to encourage the adoption of cleaner and greener transportation options while addressing the specific needs of different vehicle segments.
As the government continues to refine and develop the FAME III scheme, it is expected to provide a significant boost to the electric vehicle industry and pave the way for a more sustainable and environmentally friendly transportation ecosystem in India. The inclusion of alternative fuel vehicles in the scheme reflects the government’s recognition of the importance of exploring various clean energy options to achieve its ambitious environmental goals.
