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Cabinet may decide on FAME II scheme in a month: Geete

Press Trust of India  |  New Delhi 

The may decide on the roll out of the FAME scheme's second phase to boost adoption of in a month's time, said.

The proposal entailing details of the scheme should come up before the in a month, the told

The second phase of the scheme spanning five years from 2018-19 to 2022-23 is likely to entail financial support of Rs 9,381 crore and target new vehicles used for public transport, commercial purposes and high-speed two-wheelers, official sources said.

According to the sources, the scheme may also entail provision for establishment of a Rs 500 related to to boost high-risk startups and foster innovation and entrepreneurship.

The main thrust of the will be for development of zero emission vehicles and its component base, making prototype to and development of R&D, and promoting work on alternative battery chemistries, among others.

The government had extended the phase I of the scheme entailing incentives for mass adoption of electric and hybrid vehicles by six months till September-end or till its second phase is approved, whichever is earlier.

The phase I 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 had earlier circulated a draft Cabinet note entailing the details of the proposed scheme among various related government departments, including power, new and renewable energy, road and highways, and others.

With an aim to promote eco-friendly vehicles, the government had launched the Faster Adoption and of Hybrid and in (FAME India) scheme in 2015, offering incentives on electric and hybrid vehicles of up to Rs 29,000 for bikes and Rs 1.38 lakh for cars.

Under FAME II, demand aggregation will be attempted for city buses, electric three-wheelers and electric four-wheeler taxi segment to bring down the cost of vehicles.

Agencies such as EESL, (Association of State Road Undertakings) could be considered as potential aggregators, the sources said.

Moreover, large EV components such as motor, drive powertrain and controller, which are currently not covered under modified special incentive package scheme (MSIPS) of the have been proposed to be given capital investment subsidy at a rate of 20-25 per cent of capital investment under FAME II.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Sun, June 10 2018. 11:40 IST