How Fame 3 Can Amp-up Our Fields

Dive into how extending this subsidy to tractors could spark the next big farm sector revolution

To turbocharge the adoption and manufacturing of electric vehicles (EVs) in India, the government rolled out the FAME subsidy. This initiative slashes the upfront cost for Electric Vehicles buyers, making green transportation more accessible.With whispers of a FAME III in the works, let’s dive into how extending this subsidy to tractors could spark the next big farm sector revolution.

In recent years, India's journey towards electric mobility has been nothing short of a blockbuster saga. The government’s steadfast push for Electric Vehicles isn’t just changing how we commute; it’s driving us towards a cleaner, greener future. The star of this narrative is the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme, which has electrified our roads and is now poised to energise our fields.

In 2015, FAME I- launched as a transformative initiative, offering subsidies for electric two-wheelers, cars, and more, aiming to make Electric Vehicles affordable and reshape India's transportation landscape. It replaced the roar of traditional engines with the quiet, efficient hum of electric motors, sparking India's electric revolution.

By 2019, FAME II emerged with a significant ₹10,000 crore budget over three years. This phase focused not only on buyer incentives but also on building a comprehensive Electric Vehicle charging infrastructure. FAME II expanded the EV landscape, envisioning a sustainable, electrified ecosystem to make Electric Vehicle adoption seamless and practical.

It turbo-charged the adoption and development of the ecosystem of Electric Vehicles. With the Fame II mandate of 95 % localization of Electric Vehicle parts, it boosted the sector to inhouse manufacture the parts thus enriching the whole market to produce Electric Vehicle parts in Volume. This lowered the price, increased the reliability and paved the way to faster adoption of Electric Vehicle 2 wheelers.

Now, all eyes are on FAME III, promising to take the Electric Vehicle narrative to new heights. Extending FAME III subsidies to Electric Tractors could revolutionise the agricultural sector, providing significant benefits to farmers and the world. Electric tractors would drastically reduce the carbon footprint of farming, contributing to more sustainable agricultural practices. By replacing diesel tractors with electric tractors, harmful emissions would be reduced, leading to cleaner air and healthier ecosystems. Electric tractors would also reduce fuel costs substantially, as electricity is cheaper than diesel, making farming more cost-effective. Additionally, electric tractors have fewer moving parts compared to their diesel counterparts, leading to lower maintenance costs and downtime. Farmers can use renewable energy sources like solar to power their electric tractors, decreasing dependence on fossil fuels and lowering operational costs. Encouraging the use of renewable energy can promote energy independence among farmers, stabilising their energy costs and supply.

The introduction of electric tractors can drive technological advancements in agricultural machinery, leading to smarter and more efficient farming practices. Electric tractors equipped with advanced technologies can improve precision farming, increasing crop yields and efficiency. Extending subsidies to electric tractors under FAME III would lower the initial cost barrier, making the transition to electric machinery feasible for a larger number of farmers. Government initiatives to educate farmers about the benefits and operation of electric tractors would be crucial for widespread adoption.

Adding a dramatic twist, the Federation of Indian Chambers of Commerce and Industry (FICCI) is pushing for FAME’s extension over the next five years. FICCI’s vision includes sustained subsidies, a mid-scheme review, and incorporating emerging green technologies to keep the Electric Vehicle momentum rolling. They emphasise that the continuation of FAME is crucial to achieving the government’s goal of 30% Electric Vehicle penetration by 2030, potentially supporting the adoption of 30.5 million EVs.

Awaiting Tomorrow's EV Extravaganza

As FAME III draws near, the potential to transform not just our roads but also our farmlands is evident. By subsidising electric tractors, we invest in a sustainable future for farmers, promising cleaner air, reduced costs, and energy independence. This initiative sparks innovation in agriculture, with government commitment, private sector ingenuity, and industry support paving the way for a greener tomorrow. Let's embrace this revolution, nurturing our land and communities, driving towards a cleaner, fairer future. Together, we'll script the best chapters of our electric journey, making sustainability a reality for generations to come.