Big boost to EVs in India: Govt confirms subsidies for all vehicles including electric cars - The Financial Express

Big boost to EVs in India: Govt confirms subsidies for all vehicles including electric cars

FAME II scheme will provide incentives to all categories of electric vehicles based on their technology, including two-, three- and four-wheelers. The decision was made with top officials from various government ministries and NITI Aayog.

By: | Published: August 24, 2018 10:59 AM
electric vehicle subsidy Image for representational purposes only

The roadmap for the second phase of FAME (Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles) India scheme has been finalised. This will include an investment of about Rs 5,500 crore over five years while providing subsidy support for all types of electric vehicles, PTI reported. The inter-ministerial panel has concluded that subsidies will be available to all categories of electric vehicles - two-, three- and four-wheelers - in order to promote green vehicles and check pollution.

The decision was made in the presence of top officials from road transport and highways, finance and heavy industry ministry, along with other departments including government think tank NITI Aayog.

At present, the incentive is being offered on purchase of strong hybrid and electric cars, two-wheelers and three-wheelers under the Faster Adoption and Manufacturing of Hybrid and Electric vehicles in India (FAME India- I) scheme.

FAME II will ensure incentives to a wide range of EVs. The scheme will provide incentives, based on technology, to battery-operated scooters and motorcycles in a range of Rs 1,800 to Rs 29,000. For three-wheelers, the incentives will range from Rs 3,300 to Rs 61,000. At present, automotive manufacturers claim the incentive from the government at the end of each month.

Also read: Now convert your car into electric or hybrid easily: Here’s how

Government's plan is to offer incentives so that various State-run transport authorities can switch to hybrid and electric buses followed by a major chunk of new two-wheelers being sold in the country going electric. The idea is the mass implementation of the electric vehicle in the public transport sector. However, a source close to the FAME II project also says that government will not hold back FAME II incentives for private electric cars and SUVs.

While NITI Aayog has been working to implement electric and hybrid transportation future in India, other stakeholders including, Ministry of Road Transport, Ministry of Heavy Industries, Finance Ministry, GST Council, NGT, and ARAI have also been involved to make the overall process of implementation smoother.

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