Alternative fuel vehicles may get subsidy thrust

The government has initiated work on the third phase of the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAMEIII) financial support scheme, which is likely to encompass alternative fuel vehicles, Business Standard has learnt

- NITIN KUMAR

FUELLING UP

• Vehicles powered by alternative sources like hydrogen and biofuels will get incentives
• The government currently provides subsidies under the FAME scheme for BEVs and strong hybrids
• Proposal to add trucks to the list of beneficiary vehicles

According to a senior government official, there is a proposal to incorporate vehicles powered by alternative sources such as hydrogen and biofuels in the upcoming phase of FAME.

"The objective is to shift away from conventional polluting vehicles, and the incentive for alternative fuels aims to encourage the transition from internal combustion engine (ICE) to cleaner technology," government officials observed.

The Society of Indian Automobile Manufacturers has identified nine global powertrain alternatives to the traditional ICE.