The Center introduced the Faster Adoption and Manufacturing of Electric Vehicles or FAME (FAME) scheme to encourage the purchase of electric vehicles. Its second phase i.e. FAME 2 expired on March 31. As a result, the cost of buying electric scooters and bikes has increased a lot. In this context, it is heard that this time the center is going to bring FEM-3 project. The government may announce it in the upcoming budget.
Electric scooters will be much cheaper if FAME III is implemented
Modi government may allocate Rs 10,000 crore under FEM-3 scheme to rekindle the enthusiasm among consumers to buy electric vehicles. Apart from electric scooters, three and four wheeler models can also be covered under this subsidy. Currently Electric Mobility Promotion Scheme 2024 or EMPS 2024 is in operation. Under which the government has earmarked 500 crore rupees. But the term ends on July 31, 2024.
Needless to say, when FEM-3 is announced, electric scooters will become much cheaper in one fell swoop. Nowadays, many buyers are attracted towards eco-friendly vehicles. The reason for this is firstly the fire price of fuel oil and secondly the increasing awareness towards the environment. Experts believe that if the subsidy is added to this, the sales of battery-powered scooters will rise.
Incidentally, the Center launched the FAME project in the 2015 budget. 5,172 crore was earmarked for the purchase of electric vehicles. FEM-2 was brought in 2019. Under which the amount of subsidy is increased to 10,000 crores. The scheme expires on March 31, 2024. There are speculations that the center is going to bring Fame-3 again this time.
