Hydrogen-Powered Vehicles Could Be Included in India's FAME III Scheme: Report

The Indian government is planning the third phase of the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME III) financial support scheme. This time, the scheme is likely to cover hydrogen-powered vehicles, provide additional support for electric three-wheelers, and offer a curtailed version for two-wheelers, The Economic Times reports.

Alternative Fuels in Focus

Vehicles powered by alternative fuels, such as hydrogen, which were not supported in the previous FAME schemes, may be included in the upcoming one, according to a senior government official. The first two phases of the FAME scheme primarily supported the proliferation of electric vehicles in the country.

Support for Two-Wheelers

Electric two-wheelers benefited the most from the scheme, initially receiving a 40% subsidy on the sale price of the vehicles. However, this support was reduced to 15% towards the last year of the FAME II scheme to distribute the remaining funds to a larger number of beneficiaries.

Enhanced Support for Three-Wheelers

Electric three- and four-wheelers did not receive adequate support from either FAME I or II due to the majority of vehicles in the market not fitting the scheme’s specified parameters. Therefore, enhanced support for electric three-wheelers can be expected in FAME III.

Industry Consultation

The government has sought information from industry stakeholders regarding the challenges they faced under FAME II and the incentive and domestic value addition they would recommend for consideration under the third phase of the scheme.

Hi, I am the Benzinga Newsbot! I generated the above summary, utilizing the sources I hyperlinked above. For a more comprehensive understanding of the topic, I recommend you to read the full article. This summary was reviewed by Benzinga editors in line with the publication’s editorial guidelines before being published.

Don't miss a beat on the share market. Get real-time updates on top stock movers and trading ideas on Benzinga India Telegram channel.

Posted In: GovernmentRegulationsTravelTechGeneralelectric vehiclesFAME