Govt to give grants to cities buying electric vehicles for mass transport

The Centre has invited proposals from cities with population above 10 lakh for extending grants under the FAME India scheme to promote large-scale adoption of electric vehicles in multi-modal public transport.

Using clean energy modes like electric vehicles for shared mass transport will help bring down high pollution level in big cities.

An Expression of Interest floated by the Heavy Industries Ministry has invited proposals from state government departments, undertakings and municipal corporations for availing incentives to procure electric buses, electric four- wheelers, passenger cars and electric three-wheelers.

"The Expression of Interest is for a pilot project under the FAME India Scheme, specifically designed to give a push to electric vehicles in multi-modal public transport," a senior government official told PTI.

Funds amounting to not more than Rs 105 crore will be provided to each selected city having population of above 10 lakh (as per 2011 census) in the current financial year 2017- 18 for electric buses (maximum 100 per city), electric four- wheeler passenger cars and electric three-wheelers.

In addition to the monetary grant of up to Rs 105 crore per city, funds will also be provided for setting up of charging infrastructure in the selected cities with a ceiling of Rs 15 crore per city.

The proposals will be selected based on parameters like the population of a city, its average pollution level, the number of vehicles registered, ranking in Swachhata Abhiyan and whether it is among the proposed Smart Cities.

The funding will be available only to those electric buses, electric 4-wheelers, passenger cars and electric 3- wheelers that run on advance battery.

An advance battery represents the new generation batteries without lead such as lithium polymer, lithium iron phosphate, nickel metal hydride, zinc air, etc.

Demand incentives will also be extended to the Special Category States and for providing requisite charging infrastructure for such e-vehicles.

The demand incentive is available to buyers including end-users and consumers in the form of an upfront reduced price to enable wider adoption, under the FAME India Scheme [Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India].