• By Divanshi Sharma
  • Mon, 01 Apr 2024 12:54 PM (IST)
  • Source:JND

FAME 3 Scheme: The Faster Adoption and Manufacturing of Electric Vehicles (FAME) 2 scheme was brought to an end on March 31, 2024. Now, the upcoming FAME 3 scheme has sparked anticipation and speculation within the automotive industry, however, official details have not yet been disclosed. The FAME 3 scheme has been initially allocated Rs 2,671.33 crore during the Interim Budget. 

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This figure represents a nearly 44 per cent reduction from the previous fiscal year's allocation. However, industry insiders foresee a potential increase in funding during the main budget announcement in July, with projections ranging from Rs 10,000 to Rs 12,000 crore allocated for the third phase of the FAME initiative.

On March 15, 2024, the Indian government unveiled plans for restricted imports of electric vehicles (EVs) into the country, offering reduced customs duties to entice global EV manufacturers. To qualify for these benefits, automobile manufacturers must establish local manufacturing facilities within three years and achieve a 50 per cent localisation level within five years. Further elaboration on this policy is expected to be included in the upcoming FAME 3 scheme.

As per a report by HT Auto, the upcoming FAME initiative is anticipated to prioritise the advancement and adoption of electric buses and trucks on a larger scale. However, it is speculated that subsidies for electric cars and two-wheelers may undergo reductions compared to previous levels.

Despite the substantial expansion of electric vehicles, concerns remain regarding the pace of growth in EV charging infrastructure. Addressing this issue, the FAME 3 scheme is expected to place a significant emphasis on the development and expansion of charging infrastructure across the country. This move is not only crucial for accommodating the increasing number of electric vehicles on the roads but also for alleviating similar concerns among consumers and manufacturers.

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The FAME 3 scheme holds promise for further promoting the electric vehicle revolution in India. With potentially increased funding, a focus on electric buses and trucks and efforts to enhance EV charging infrastructure, the upcoming phase of the FAME initiative aims to foster greater adoption of electric mobility and support the country's transition towards a greener transportation ecosystem.