With the FAME 3 program expected to be launched soon after the completion of the central government’s FAME 2 program for electric vehicles, talks are reportedly underway to include hybrid vehicles in the program. However, it is said that while the FAME 2 scheme was a scheme for all types of electric vehicles, only two-wheelers, three-wheelers and electric buses can be included under the FAME 3 scheme.
What is the FAME program?
FAME stands for Faster Adoption and Manufacturing of Electric vehicles in India. The FAME program was launched in 2015 to promote electric vehicle manufacturing and adoption of electric vehicles in India. This initial project was operational till 2019. A budget of Rs 895 crore was earmarked for the initial FAME project.
The first phase of the FAME project followed its completion in March 2019. In April 2019, the second phase of the FAME 2 project came into effect. A budget of up to Rs.10,000 has been allocated for the scheme, while it was announced that the scheme would be operational for five years. Lakhs of electric vehicle owners benefited under this scheme.
The FAME 2 project ended on March 31. Following this, the FAME 3 project is going to be launched soon. Meanwhile, EMPS (Electric Mobility Promotion Scheme) is currently in operation as an interim scheme before the launch of FAME 3 scheme. Under this scheme, a subsidy of up to Rs.10,000 is being provided for electric two-wheelers and up to Rs.50,000 for electric three-wheelers. An allocation of Rs.500 crore has been made for this scheme.
FAME 3 project to be launched soon:
It has been announced that this EMPS scheme will be operational till July. It is expected that the FAME 3 project will be operationalized after that. While an allocation of up to Rs.10,000 crore has been planned for the FAME 3 project, talks are underway to include electric cars in the scheme. Talks are said to include electric cars for commercial purposes as well as private passenger cars.
But, like the FAME 2 scheme, the FAME 3 scheme also proposes to subsidize electric cars sold below Rs 15 lakh. Perhaps if electric cars are included in the FAME 3 scheme, hybrid cars priced under Rs 15 lakh are also expected to be included in the scheme.
It seems that steps will be taken to promote electric buses more under the FAME 3 scheme. While state governments have been given subsidy to buy 7000 electric buses under the FAME 2 scheme, it seems that under the FAME 3 scheme, more buses may be given subsidy. It is also noteworthy that while the FAME 2 project was operational for five years, the FAME 3 project may be designed to operate for only two years.
