FAME II may retain subsidy for three-wheelers

An inter-ministerial panel will meet here tomorrow to finalise modalities for the second phase of the FAME India scheme, and will consider retaining subsidy for electric three-wheelers to promote clean energy public transportation, sources said.

Top officials from departments, including finance, power, road transport and highways and heavy industry will participate in the meeting, and are likely to approve a subsidy outlay of nearly Rs 4,000 crore for the second phase of the scheme, which may be launched in early September.

"The second phase of the scheme was earlier expected to entail subsidy for electric buses and setting up of charging infrastructure for all categories of vehicles.

"However, the committee has decided to now consider inclusion of electric three-wheelers as well to promote green public transport, a government official told PTI.

According to sources, government think tank NITI Aayog is also in favour of providing subsidy to three-wheelers to promote e-mobility in public transport.

The heavy industry ministry had sought over Rs 12,200 crore in financial support to implement the scheme over the next five years.

However, the Finance Ministry may approve subsidy outlay of around Rs 4,000 crore, officials had said earlier.

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

Under the scheme, depending on technology, battery-operated scooters and motorcycles are also eligible for incentives ranging between Rs 1,800 to Rs 29,000, while in three-wheelers it is between Rs 3,300 and Rs 61,000.

At present, automotive manufacturers claim the incentive from the government at the end of each month.

With an aim to promote eco-friendly vehicles, the government had launched the Faster Adoption and Manufacturing of Hybrid and Electric vehicles in India (FAME India) scheme in 2015. The ongoing pilot phase of the scheme was earlier extended till September this year or until its second phase is approved.