Ad

Ad

Guide: Everything you need to know about FAME III Subsidy

By
Mohit Kumar
Mohit Kumar
|Updated on:17-Jun-2024 11:56 AM

Share via:


Follow Us:

google-news-follow-icon
noOfViews-icon

45,454 Views



ByMohit Kumar

Updated on:17-Jun-2024 11:56 AM

noOfViews-icon

45,454 Views

share-icon

Follow Us:

google-news-follow-icon

Get all the details about FAME III Subsidy, eligibility criteria, budget allocation, and more. Check this out if you are planning to buy any electric vehicle in future.

Guide: Everything you need to know about FAME III Subsidy

Key Highlights:

  • Harmonisation of standards with other subsidy schemes like PLI.
  • A significant increase in budget, potentially more than INR 30,000 crores.
  • Inclusion of alternative fuel vehicles.
  • Amalgamation of FAME and PLI schemes for better synergy.
  • Prioritisation of electric buses with substantial subsidies and financial support for two-wheelers and three-wheelers.

The FAME III subsidy details are expected to be announced by the new government in the main budget in July 2024. The interim budget has allocated Rs 2671.33 crore for FAME III, which is a 44% cut from the previous fiscal year's allocation. However, the industry anticipates that the government may increase this amount in the main budget. Additionally, there's an expectation that FAME III will support electric two, three, and four-wheelers with a proposed budget allocation of around Rs 10,000 crore.

With the newly formed union cabinet expected to continue subsidising electric vehicles through demand incentives, the Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme is set for its third iteration in the upcoming Budget next month.

Eligibility criteria for FAME III subsidies

  • Vehicles must be registered in accordance with the Central Motor Vehicle Rules, 1989.
  • Subsidies may be available for electric two-wheelers, three-wheelers, and four-wheelers.
  • A person is likely to be eligible for the subsidy on one vehicle per category.
  • The scheme may provide incentives of up to Rs 10,000 per electric two-wheeler and up to Rs 50,000 per electric three-wheeler.

Background

Rumours of a FAME-III launch with a budget of INR 10,000 crore have been circulating since the beginning of the year. However, there has been speculation about whether the government would continue funding EV subsidies, especially after last year's FAME-II challenges.

Government Deliberations

A senior government official informed ET that the Ministry of Heavy Industries (MHI) has already sent the plan for the scheme to the Prime Minister’s Office (PMO) for review. The government is expected to make a final decision on the proposal closer to the union budget, considering the fiscal situation.

Scope of FAME-III

According to reports, the FAME-III scheme will support electric two-, three-, and four-wheelers. Earlier reports suggested that the new scheme would provide increased support for electric three-wheelers and public transportation, such as e-buses.

Previous FAME Scheme

The previous iteration, FAME-II, launched in 2019 with a total outlay of INR 10,000 crore, ended in March. It aimed to support 10 lakh electric two-wheelers, 5 lakh electric three-wheelers, 7,000 electric buses, and 55,000 electric four-wheeler passenger cars through subsidies.

Documents Required for FAME III Subsidy

The specific documents required for the FAME III subsidy application have not been detailed yet, as the scheme is expected to be announced in the main budget in July 2024. These application may require:

  • Vehicle registration documents.
  • Proof of identity and address.
  • Invoice or proof of purchase.
  • Any other documents as specified by the scheme guidelines.

Once the FAME III scheme is officially announced, the government will provide a list of required documents for applicants. It's advisable to keep an eye on official announcements for the most accurate information. 

How to apply for FAME III Subsidy?

The exact steps to apply for the FAME III subsidy will be detailed once the scheme is officially announced in the main budget in July 2024. However, based on previous subsidy schemes, the general process may involve:

  • Checking eligibility criteria for your vehicle.
  • Gathering necessary documents (e.g., vehicle registration, proof of purchase).
  • Applying through an official government portal or authorised dealer.
  • Awaiting approval and receiving the subsidy.

Penalties for False Claim

The penalties for false claims under the FAME III subsidy scheme have not been detailed yet, as the scheme is expected to be announced in the main budget in July 2024. Typically, government subsidy schemes have strict measures against fraudulent claims, which may include:

  • Repayment of wrongly claimed subsidies.
  • Additional fines or penalties.
  • Legal action, including potential criminal charges.

Once the FAME III scheme is officially announced, the government will provide clear guidelines on penalties for false claims. It's advisable to follow official announcements for accurate information on this matter. If you have any more questions or need further assistance, feel free to ask.

Carbike360 says

As the union budget approaches, the final decision on the FAME-III proposal will reflect the government's commitment to promoting electric vehicle adoption while considering the current fiscal situation. The scheme's potential impact on the EV market will be closely watched by industry stakeholders and environmental advocates alike.
 

Ad

Ad


Follow Us:

whatsapp-follow-icon
instagram-follow-icon
youtube-follow-icon
google-news-follow-icon

More Articles

Mahindra BE.6e vs Tata Curvv EV: A comprehensive comparison on Design, Technology, Performance & Features

Mahindra BE.6e vs Tata Curvv EV: A comprehensive comparison on Design, Technology, Performance & Features

Explore the key differences between the Mahindra BE.6e and Tata Curvv EV in this detailed comparison. From design to features, discover which electric SUV leads the charge in India’s electric future.

27-Nov-2024 01:37 PM

Read Full Article
Mahindra BE.6e vs Tata Curvv EV: A comprehensive comparison on Design, Technology, Performance & Features

Mahindra BE.6e vs Tata Curvv EV: A comprehensive comparison on Design, Technology, Performance & Features

Explore the key differences between the Mahindra BE.6e and Tata Curvv EV in this detailed comparison. From design to features, discover which electric SUV leads the charge in India’s electric future.

27-Nov-2024 01:37 PM

Read Full Article
  Ken Roczen Rejoins Suzuki and H.E.P. Motorsports for 2025 SMX Season

Ken Roczen Rejoins Suzuki and H.E.P. Motorsports for 2025 SMX Season

Ken Roczen is set to compete in the 2025 SuperMotocross World Championship with Suzuki and H.E.P. Motorsports aboard the RM-Z450. Read about his journey and expectations for the upcoming season.

19-Nov-2024 01:29 PM

Read Full Article
  Ken Roczen Rejoins Suzuki and H.E.P. Motorsports for 2025 SMX Season

Ken Roczen Rejoins Suzuki and H.E.P. Motorsports for 2025 SMX Season

Ken Roczen is set to compete in the 2025 SuperMotocross World Championship with Suzuki and H.E.P. Motorsports aboard the RM-Z450. Read about his journey and expectations for the upcoming season.

19-Nov-2024 01:29 PM

Read Full Article
Which is Safer Volvo or Audi: Comprehensive Comparison of Safety Features

Which is Safer Volvo or Audi: Comprehensive Comparison of Safety Features

Explore the advanced safety technologies of Volvo and Audi. Compare features like Volvo's IntelliSafe and Audi's Pre Sense to discover which brand offers superior protection for drivers, passengers, and pedestrians.

19-Nov-2024 12:37 PM

Read Full Article
Which is Safer Volvo or Audi: Comprehensive Comparison of Safety Features

Which is Safer Volvo or Audi: Comprehensive Comparison of Safety Features

Explore the advanced safety technologies of Volvo and Audi. Compare features like Volvo's IntelliSafe and Audi's Pre Sense to discover which brand offers superior protection for drivers, passengers, and pedestrians.

19-Nov-2024 12:37 PM

Read Full Article
Why Volvo Stands Out as the Safest Choice for Cars

Why Volvo Stands Out as the Safest Choice for Cars

Volvo’s commitment to safety is unmatched. Dive into their history, groundbreaking features, and real-life stories proving why they are the safest cars on the road.

19-Nov-2024 12:27 PM

Read Full Article
Why Volvo Stands Out as the Safest Choice for Cars

Why Volvo Stands Out as the Safest Choice for Cars

Volvo’s commitment to safety is unmatched. Dive into their history, groundbreaking features, and real-life stories proving why they are the safest cars on the road.

19-Nov-2024 12:27 PM

Read Full Article
 Brixton Motorcycles Makes a dashing debut in the Indian Market

Brixton Motorcycles Makes a dashing debut in the Indian Market

Brixton Motorcycles has officially launched in India with four neo-retro models: Crossfire 500X, Crossfire 500XC, Cromwell 1200, and Cromwell 1200X, priced from ₹4.74 lakh to ₹9.11 lakh.

19-Nov-2024 09:40 AM

Read Full Article
 Brixton Motorcycles Makes a dashing debut in the Indian Market

Brixton Motorcycles Makes a dashing debut in the Indian Market

Brixton Motorcycles has officially launched in India with four neo-retro models: Crossfire 500X, Crossfire 500XC, Cromwell 1200, and Cromwell 1200X, priced from ₹4.74 lakh to ₹9.11 lakh.

19-Nov-2024 09:40 AM

Read Full Article
Supreme Court criticises CAQM & orders tougher air pollution Rules for Delhi-NCR

Supreme Court criticises CAQM & orders tougher air pollution Rules for Delhi-NCR

The Supreme Court has criticized the CAQM for its delayed response to Delhi-NCR's worsening air quality. Despite the AQI surpassing the "severe-plus" threshold, the commission failed to implement timely measures under the Graded Response Action Plan.

19-Nov-2024 05:40 AM

Read Full Article
Supreme Court criticises CAQM & orders tougher air pollution Rules for Delhi-NCR

Supreme Court criticises CAQM & orders tougher air pollution Rules for Delhi-NCR

The Supreme Court has criticized the CAQM for its delayed response to Delhi-NCR's worsening air quality. Despite the AQI surpassing the "severe-plus" threshold, the commission failed to implement timely measures under the Graded Response Action Plan.

19-Nov-2024 05:40 AM

Read Full Article

Ad

Ad

Explore Other Cars Brands

Cars In India

Mahindra XEV 9e

Mahindra XEV 9e

₹ 21.90 Lakh

Mahindra BE 6e

Mahindra BE 6e

₹ 18.90 Lakh

BMW M5

BMW M5

₹ 1.99 Cr

Maruti Dzire

Maruti Dzire

₹ 6.79 - 10.14 Lakh

Audi New Q7

Audi New Q7

₹ 89.00 - 98.00 Lakh

BMW M3 Facelift

BMW M3 Facelift

₹ 1.47 Cr

Honda New Amaze

Honda New Amaze

₹ 7.50 - 10.00 Lakh

Toyota Camry 2024

Toyota Camry 2024

₹ 45.00 - 55.00 Lakh

Audi A3 2024

Audi A3 2024

₹ 35.00 Lakh

Ad

Ad

Ad