Government launches scheme to boost electric, hybrid vehicle sales

NEW DELHI: To boost eco-friendly vehicles sales, the government today launched FAME India scheme that envisages to provide Rs 795 crore support till 2020 for the manufacturing and sale of electric and hybrid vehicles.

The scheme envisages providing demand incentives to electric and hybrid vehicles -- from two-wheeler to buses -- in range of Rs 1,800 to Rs 66 lakh.

"FAME-India or Faster Adoption and Manufacturing of Hybrid and Electric vehicles in India as part of the National Mission for Electric Mobility is being launched from April 1," the Department of Heavy Industries said.

The government had approved an initial outlay of Rs 75 crore from Plan Fund for the FAME-India scheme in the Budget.

A gazette notification on March 13 had said: "The overall scheme is proposed to be implemented over a period of 6 years, till 2020, wherein it is intended to support the hybrid or electric vehicles market development and its manufacturing eco-system to achieve self-sustenance at the end of the stipulated period."

The Phase-1 of the scheme will be implemented over a two year period in FY15-16 and FY16-17.

Based on the outcome and experience gained in the first phase, the scheme will be reviewed for implementation after March 31, 2017, with appropriate fund allocation in future.

The scheme will have four focus areas, technology development, demand creation, pilot projects and charging infrastructure.

It entails provision of funds to the tune of Rs 260 crore and Rs 535 crore for the first two years, respectively, to be spent on technology platform (including testing infrastructure); demand incentives; charging infrastructure; pilot projects and operations.

As per the scheme, depending on technology, battery operated scooters and motorcycles will be eligible demand incentives ranging between Rs 1,800 to Rs 29,000. Similarly in three-wheeler it is from Rs 3,300 and Rs 61,000.

In four-wheelers, the incentives ranges from Rs 13,000 and Rs 1.38 lakh, while in light commercial vehicles it is from Rs 17,000 to Rs 1.87 lakh, while in buses it is Rs 34 lakh to Rs 66 lakh.

The Department of Heavy Industries will be nodal department for the scheme.