FAME 3 refers to the third phase of India’s Faster Adoption and Manufacturing of Hybrid and Electric Vehicles scheme. This initiative aims to further accelerate the adoption of electric vehicles (EVs) in the country by providing financial incentives, enhancing infrastructure, and promoting domestic manufacturing. FAME 3 is designed to build on the successes of its predecessors by addressing the evolving needs of the EV market and supporting the transition to cleaner transportation.
One of the primary differences between FAME 3 and FAME 2 is the scope and budget allocation. FAME 2, launched in April 2019 with a budget of ₹10,000 crore (approximately USD 1.4 billion), focused on supporting 1 million electric two-wheelers, 500,000 electric three-wheelers, 55,000 electric four-wheelers, and 7,000 electric buses over three years. FAME 3 is expected to have a higher budget and extended duration, targeting a broader deployment of electric vehicles and a significant expansion of charging infrastructure.
FAME 2 concentrated on providing subsidies for public transportation, including buses and three-wheelers, and offered some incentives for private electric two-wheelers. In contrast, FAME 3 is anticipated to expand these incentives to cover a wider range of private electric vehicles, including cars and potentially commercial vehicles, making EVs more affordable for individual consumers and businesses alike.
Infrastructure development is another area where FAME 3 aims to make substantial progress. While FAME 2 included the installation of approximately 2,700 charging stations across major cities, FAME 3 plans to significantly increase the number and reach of charging stations, ensuring they are accessible in both urban and rural areas. This expansion will focus on creating a more robust and interconnected charging network to support the growing number of EVs on the road.
Finally, FAME 3 is expected to place a greater emphasis on technological advancements and research and development. While FAME 2 initiated support for R&D in EV technology, FAME 3 will likely encourage more advanced innovations, particularly in battery technology and smart charging solutions. The goal is to promote the use of renewable energy sources for EV charging and ensure that India remains at the forefront of the global shift towards sustainable transportation.