FAME-III In The Works With ₹10,000 Crore Outlay

As the Electric Mobility Promotion Scheme (EMPS) ends in July, the Government of India will introduce the third edition of its flagship electric vehicle incentive scheme – Faster Adoption and Manufacturing of Electric Vehicles (FAME), a governmental official revealed to The Economic Times. A total of ₹10,000 crore has been allocated for FAME-III. Unlike the FAME-II scheme, the upcoming scheme will be valid for two years instead of five years.

This is the first confirmational news of the continuation of the incentive scheme, earlier it was believed that it would end with EMPS, which kickstarted on April 1, after the FAME-II scheme expired on March 31.

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Largely mirrored on the FAME-II scheme, the upcoming FAME-III will carry forward the same focus that the EMPS now provides– better financial incentives to electric two-wheelers, three-wheelers and government-owned buses. However, a decision on whether private electric cars and aggregators will be covered has yet to be made. And if passenger cars are approved for subsidies, hybrid cars are likely to feature in this list too. 

The scheme will be sent to the Union Cabinet once the new Government is formed and it will roll out in about 100 days from the first day of governance. Moreover, since FAME-III is a new scheme, automakers will need to apply for fresh certification to avail these incentives.

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