Govt extends phase 1 of FAME-India by another 6 months

Don't want to miss the best from Business Standard?

The government today announced extension of phase 1 of the FAME-India scheme entailing incentives for mass adoption of electric and strong hybrid vehicles by six months till September-end or till its second phase is approved, whichever is earlier.

The extension is deemed to have taken effect on April 1, 2018, the Department of Heavy Industry said in a notification.

The phase 1 of the scheme was initially proposed for two years till March 31, 2017 but was extended twice for six months up to March 31, 2018.

The government is likely to extend financial support of Rs 8,730 crore for the second phase of the FAME India spanning five years but the incentives will be restricted to new energy vehicles used for public transport, commercial purposes and high-speed two-wheelers, sources told PTI earlier.

According to officials in the heavy industry ministry, which has proposed the outlay and roadmap for the scheme, the government has decided to adopt a 'technology agnostic' approach and only advanced chemistry batteries will be promoted in the Phase II of the scheme.

The FAME-India (Faster Adoption and Manufacturing of (hybrid &) Electric vehicles in India) scheme is intended to support the hybrid/electric vehicles market development and its manufacturing ecosystem to achieve self-sustenance.