Finance Ministry Likely To Approve Rs. 4,000 Crore For FAME 2.0 Scheme

In the midst of the growing focus towards electric mobility and electric cars, reports of the possibility of the finance ministry approving a subsidy outlay of nearly Rs. 4,000 crore for FAME India has come to light. The money will fuel the second phase of the FAME (Faster Adoption & Manufacturing of Hybrid and Electric Vehicles) scheme, offering incentives to owners who buy a hybrid of electric vehicle in India. However, the second phase of the scheme is expected to entail subsidy only for electric buses and setting up of charging infrastructure for all categories of vehicles.

Also Read: Government To Scrap Subsidy For Private Electric Cars In Second Phase Of FAME

All that said, the heavy industry ministry had reportedly asked the government for over Rs. 12,200 crore, in financial support, for the implementation of the second phase of the FAME scheme. The ministry said that the money will be used to support the scheme over a period of next five years. As of now, the cabinet is expected to consider the second phase of the scheme for approval in a fortnight, said the government officials. The subsidy allocation, however, was decided at a meeting between the Expenditure Secretary and his counterpart from the heavy industry ministry held on August 1, 2018.

Currently, under FAME India- I, the government is offering an incentive to buyers on the purchase of strong hybrid and electric cars, two-wheelers and three-wheelers. Vehicle owners can get incentives ranging between Rs. 1,800 to Rs. 29,000 on the purchase of battery operated scooters and motorcycles, depending on technology. While for electric three-wheeler buyers, the incentive scheme starts from Rs. 3,300 going up to Rs. 61,000. The subsidy money is claimed by auto manufacturers at the end of each month, from the government.

The Government of India started the FAME scheme in the year 2015 with an aim to promote eco-friendly vehicles. The phase one of the FAME scheme was earlier extended till September this year or until its second phase is approved.