FAME III Scheme: Govt Considering Tripling EV Subsidies, Likely To Be Hiked To Rs 30,000 Crore

Amid the rising popularity of the electric vehicles in India, the government is considering tripling the subsidy allocation for EV purchases in the upcoming third edition of the Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicles in India (FAME) programme.

The allocation for the FAME III scheme is expected to rise to around Rs 30,000 crore, a significant increase from the Rs 10,000 crore allocated for the current FAME II scheme, Livemint reported citing sources.

However, the consultations are still in progress and the final allocation has not been determined. In addition to the EVs, there will also be a significant focus on developing charging infrastructure.

According to a report in the Economic Times, the upcoming scheme is also likely to include support for hydrogen-powered vehicles, which did not receive financial assistance in the previous FAME programmes.

The initial phases of the FAME scheme were aimed at promoting the adoption of electric vehicles in the country, with a particular focus on electric two-wheelers.

These two phases provided substantial support, offering a 40 per cent subsidy on the sale price of the vehicles. However, as the scheme progressed, the subsidy for electric two-wheelers was reduced to 15 per cent in the final year of FAME II. This adjustment was made to allocate the remaining funds to a wider range of beneficiaries.