FAME III in the works, may cover alternative fuel vehicles this time

economictimes.indiatimes.com:

government has begun working on the third phase of the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME III) financial support scheme, which is likely to cover hydrogen-powered vehicles, additional support for electric three-wheelers and a curtailed version for two-wheelers, said officials. «Vehicles powered by alternative fuels, such as hydrogen, which did not find support in the previous FAME scheme programmes, may be included in the next one,» a senior government official told ET. 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% subsidy on the sale price of the vehicles. The support was trimmed to 15% towards the last year of the FAME II 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 I or II. This is because most vehicles available in the market did not fit the parameters specified in the scheme,» the official said, adding that enhanced support for electric three-wheelers can be expected in FAME III.

The government has sought information individually from industry stakeholders, according to industry executives being consulted on the third phase of the scheme. They said last month information was sought regarding the challenges companies faced under FAME II and the quantum of incentive and domestic value addition they would recommend for consideration under the third phase of the scheme.