FAME III Expected to Take Center Stage in Upcoming Interim Budget

The Indian government is considering an expansion of third phase of its Faster Adoption & Manufacturing of Electric Vehicles (FAME) scheme, possibly allocating ₹10,000-12,000 crore in the upcoming interim budget on February 1. This follows industry demands for continued support for electric mobility beyond existing programs like the production-linked incentive (PLI) scheme, which some find restrictive.

FAME III is expected to resemble the ongoing FAME II program, already adjusted to support more vehicle sales and stricter oversight. Unlike FAME II, which primarily focused on two-wheelers, the new phase may prioritize mass transport options like electric buses and alternative fuels. This potential shift stems from FAME II's achievements in exceeding its target for electric two-wheelers but falling short in other categories. Concerns about companies circumventing localization requirements and subsidy caps also weighed on the previous program.

While details remain undisclosed, FAME III's potential focus on mass transport and alternative fuels reflects the government's broader goals for reducing emissions and diversifying energy sources. The February budget announcement should provide further clarity on the scheme's specifics and budget allocation.