FAME 3.0: Government's EV Incentive Scheme To Include Hydrogen-Powered Vehicles In Its Revamped Version

A new version of the subsidy scheme for electric vehicles — Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME 3.0) is reportedly being developed in India.

This revamped scheme in its third phase may include light commercial vehicles and provide funding for research on domestic solutions for the sector.

While specific details of FAME 3.0 have not been disclosed, the upcoming phase is likely to support vehicles powered by alternative fuels, including hydrogen, reports Economic Times.

This is a significant departure from the previous FAME schemes, which did not extend support to such vehicles.

Officials have revealed that FAME 3.0 aims to provide additional assistance to electric three-wheelers while introducing a scaled-down version for two-wheelers.

The earlier phases of the scheme primarily focused on promoting electric vehicles, with electric two-wheelers being the primary beneficiaries.

Additionally, the ministry plans to issue a new tender for 20 gigawatts of advanced chemistry cells after consulting with industry players.

The Faster Adoption and Manufacturing of Electric Vehicles scheme was launched in April 2015 under the National Electric Mobility Mission, to encourage electric and hybrid vehicle purchase by providing financial support. 

The first two phases of the FAME scheme supported proliferation of electric vehicles in the country.

Electric two-wheelers benefited the most from the scheme, which initially offered a 40 per cent subsidy on the sale price of the vehicles.

The support was trimmed to 15 per cent towards the last year of the FAME 2.0 scheme in a bid to spread the remaining funds to a larger number of beneficiaries.

"Electric three- and four-wheelers could not be adequately supported by either FAME-1 or 2. This is because most vehicles available in the market did not fit the parameters specified in the scheme," an official said, adding that enhanced support for electric three-wheelers can be expected in FAME 3.0.