For the promotion of electric and hybrid vehicles, the finance ministry can approve a subsidy of about Rs 4,000 crore for the second phase of Fame India. The Ministry of Heavy Industries had demanded Rs 12,200 crore in the next five years for implementation of the scheme in five years. In the second phase of the scheme, the subsidy is for charging only the electric buses and charging infrastructure for all categories of vehicles. At present, the promotion under the Fame India-1 is being given for the purchase of hybrid and electric vehicles, two-wheelers and three-wheelers. Under the scheme, battery operated scooters and motorcycles are also eligible for promotion between Rs. 1,800 and Rs. 29,000 depending on the technology.
In the case of three-wheelers, it is between Rs 3,300 and Rs 61,000. Government officials said that the second phase of the scheme is expected to be approved within a fortnight from the cabinet. The decision about the allocation of subsidy was made in the meeting of Expenditure Secretary and Secretary of the Ministry of Heavy Industries on Wednesday.
At the moment, automobile companies claim incentives in the last of each month. The government has started 'Faster Adaptation of Manufacturing and Hybrid and Electric Vehicles' (Fame India) Scheme in 2015 to promote environmentally friendly vehicles. The current initial stimulus stage of the scheme has been extended to the approval of September or the second phase this year.
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