FAME scheme to help save Rs 60,000-cr fuel annually: Anant Geete

FAME scheme offering incentives for hybrid and electric vehicles will help in annual saving of fuel worth Rs 60,000 crore besides containing pollution, Heavy Industries Minister Anant Geete said on Wednesday.

"The biggest challenge for the auto sector today is related with environment. Under the scheme, the government has decided to invest Rs 14,000 crore. Due to this investment, we would be able to save fuel worth about Rs 60,000 crore. This means, definitely it will help in controlling pollution also," the minister said at the SIAM convention here.

However, he said it is a proven fact that burning of fuel is not the only reason for pollution.

To promote eco-friendly vehicles, the government had last year launched the FAME India scheme offering incentives on electric and hybrid vehicles of up to Rs 29,000 for bikes and Rs 1.38 lakh for cars.

FAME India - Faster Adoption and Manufacturing of Hybrid and Electric vehicles in India - is a part of the National Electric Mobility Mission Plan. The scheme envisages Rs 795 crore support in the first two fiscals starting last year.

The minister further said the FAME scheme is for the entire country and any consumer can take advantage of this.

Assuring full support to the auto industry, the minister hoped the implementation of GST law will help the sector most.

The auto industry will be benefited from the ease of doing business and reduction in excise duty, Geete added.

Further, he said India is a country of young population and the auto industry should take benefit of this demographic dividend.

He also asked the auto industry body SIAM to indulge in continuous dialogue with the government to raise their issues and concerns.

"We should meet once in every six months. There should be a continuous dialogue," he added.

This morning, when Geete reached the venue, it was waterlogged and his security staff offered to help him cross the area. The minister refused to take help while quipping that he doesn't want his picture to be flashed like that of Madhya Pradesh Chief Minister Shivraj Singh Chouhan.

A few weeks back, Chouhan was seen in a picture lifted by his security officials while crossing a waterlogged area during his visit to flood-affected regions of his state. The picture had gone viral on various social media platforms and also published in major newspapers.