Govt Likely To Prioritise Pure EVs Over Hybrids In FAME-III Scheme

New Delhi, May 27 (KNN) The upcoming third phase of the government's Faster Adaption of Manufacturing of Electric Vehicles (FAME-III) scheme is unlikely to extend benefits to hybrid vehicles, according to sources familiar with the matter.

A Cabinet note detailing the new policy has been prepared and is expected to be circulated once the new government takes office after the ongoing general elections, reported BL.

While Road Transport Minister Nitin Gadkari has advocated incentives for hybrid vehicles, prevailing thinking within the government favours promoting purely electric vehicles over hybrids, the sources indicated.

An official stated the focus will be on bolstering charging infrastructure to address consumer concerns around operating electric vehicles.

"The Cabinet note is ready, we can present it once the new government is in place," the senior official told reporters. "We don't know the quantum of funds that could be allocated for the scheme; it all depends on the Finance Ministry," he added.

This approach diverges from Minister Gadkari's advocacy for incentivising hybrid and flex-fuel hybrid vehicles through reduced taxation compared to gasoline models. He has argued that flex-fuel hybrids using ethanol can be cheaper and less polluting than even battery EVs.

However, sources indicate there are relatively few mass-market hybrid passenger vehicle models manufactured in India apart from some Japanese automakers. Luxury hybrid imports already benefit from the Production Linked Incentive scheme launched in 2021. Nascent technologies like hydrogen fuel cells may not yet justify inclusion in FAME incentives.

The FAME-I scheme launched in 2015 with an outlay of Rs 795 crore, followed by FAME-II in 2019 with Rs 10,000 crore funding until March 2024. A recent Rs 500 crore Electric Mobility Promotion Scheme covers two/three-wheelers. Leading automakers have lobbied for hybrid vehicle support as FAME-III takes shape.

(KNN Bureau)