Department of heavy industries decided to incentivise only electric buses under second phase of FAME II scheme.
The second phase of FAME II (Faster Adoption and Manufacturing of Hybrid and Electric vehicles) scheme may offer incentives on purchase of electric buses only. The department of heavy industries (DHI) is said to have recently held a meeting and decided to incentivise only electric buses.
At present, incentive is being offered on purchase of hybrid and electric vehicles (two-wheelers and three-wheelers) under FAME India- I. Battery operated scooters and motorcycles are eligible for incentives ranging from INR 1,800 to INR 29,000, while in three-wheelers, it is between INR 3,300 and INR 61,000.
Benefits under FAME II scheme
Inc42 reported that under the FAME II scheme, large EV components have also been proposed to be given a capital investment subsidy at a rate of 20 perecnt to 25 percent. These large EV components — such as motors, drive powertrains, and controllers — are currently not covered under the Modified Special Incentive Package Scheme (MSIPS) of the ministry of electronics and information technology.
At the same time, the department of heavy industries has set a target of increasing the number of EVs in overall new vehicle sales to 4 percent in the next five years, starting from 2018-19.
A policy on electric vehicles charging infrastructure that proposes granting subsidies to PSUs for setting up a basic charging station network in big cities and highways is also under discussion with the Power Ministry.
The electric vehicle manufacturers will also submit specific suggestions to different ministers and the Niti Aayog regarding promotion of various aspects of electric mobility in September this year.
