New Delhi: In a bid to promote electric mobility and reduce carbon emissions, the government is set to introduce a new subsidy scheme, tentatively named FAME-III, later this year. Under this scheme, medium to heavy electric trucks are likely to benefit from subsidies ranging between 15% and 25%, significantly reducing their purchase prices.
Currently priced between Rs 70 to Rs 90 lakh, the cost of medium to heavy electric trucks is expected to decrease by 20% to 25% following the implementation of the proposed subsidy. However, sources indicate that hybrid passenger vehicles may not be included in the subsidy scheme. The ambit of FAME-III may extend to encompass e-buses in nine cities with populations exceeding four million, further incentivizing the adoption of electric vehicles (EVs) in public transportation.
Sources suggest that the scheme is poised to receive a minimum outlay of around Rs 9,500 crore over a two-year duration. The structure of FAME-III is anticipated to mirror its predecessors, focusing on promoting e-mobility through subsidies and the development of charging infrastructure. Continuing the legacy of its predecessors, FAME III will prioritize the inclusion of e-two-and-three-wheelers, along with targets for domestic value addition in EV manufacturing.
While FAME-II, which concluded on March 31, witnessed an outlay of Rs 10,000 crore, the interim Electric Mobility Promotion Scheme (EMPS) has been introduced between April and July with an outlay of Rs 500 crore. This scheme aims to subsidize the purchase of electric two-wheelers, three-wheelers, and e-rickshaws by consumers. During its tenure, FAME-II successfully subsidized over one million two-wheelers, approximately 150,000 three-wheelers, and around 17,000 public transport four-wheelers, highlighting the effectiveness of government incentives in promoting the adoption of electric vehicles.
The introduction of FAME-III signals a continued commitment to fostering a sustainable and environmentally friendly transportation ecosystem in India, encouraging both consumers and manufacturers to embrace electric mobility solutions.
