FAME India II To Be Launched By PM Narendra Modi Next Month

The second phase of the FAME India scheme will be kicked off on September 7, 2018, by Prime Minister Narendra Modi, according to officials, as per a report by PTI. The scheme for Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME) India was introduced in a bid to incentivise sales and manufacturing of electric vehicles in the country. Under Phase II of the initiative, the government has earmarked a budget of Rs. 5500 crore to be used over the next five years and will be used to provide subsidies to all types of electric vehicles.

The modalities of the scheme have been finalised by an inter-ministerial panel and will be placed before the Union Cabinet for approval soon. The prime minister will be introducing FAME II at the inaugural session of the MOVE - global mobility summit in Delhi, that will also have several global CEOs of the automotive sector in attendance, as per the report.

Phase 1 of the FAME initiative was first introduced in 2015 in a bid to promote eco-friendly mobility and was proposed for a period of two years till March 31, 2017. The scheme was then extended twice for six months each ending on March 31, 2018. The third extension was announced in April this year up to September 2018, or till the second phase was announced. The FAME II scheme will be kicked-off on October 1, 2018.

FAME II will offer subsidies to all categories of electric vehicles including two-wheelers, three-wheelers, as well as four-wheelers including taxis, as well as electric buses. Under FAME I, electric and hybrid vehicles including cars, two-wheelers and three-wheelers are covered. However, strong hybrid vehicles that were entitled to incentives in phase I, will not be able to avail benefits in the second phase.

The FAME II scheme proposes to provide incentives to battery-operated scooter in the range of Rs. 1800-29,000, while incentives for three-wheelers will be in the vicinity of Rs. 3300-61,000. Auto manufacturers claim the incentive from the government at the end of each month.