Government launches FAME India scheme to encourage electric vehicles sales

In a bid to boost the sales of electric and hybrid vehicles in India, the government has launched the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme in the country in association with the Society of Indian Automobile Manufacturers (SIAM). Under this scheme, the centre will offer incentives on eco-friendly vehicles to promote its sales in India.

The overall scheme is proposed to be implemented over a period of six years, till 2020, and it aims to encourage sales of electric and hybrid vehicles up to 60-70 lakh units per year. The Phase-1 of the scheme will be implemented over a two-year period in FY15-16 and FY16-17. Out of the Rs 795 crore budget allocated for the scheme in the first two fiscals, the government has already approved an initial outlay of Rs 75 crore in this year’s budget.

The scheme will focus on four key areas namely, technology development, demand creation, pilot projects and charging infrastructure. Based on the results and experience achieved in the first phase, the scheme will be reviewed for implementation after March 31, 2017, with appropriate fund allocation in future.

Under this scheme, customers opting for electric and hybrid vehicles can get incentive in the form of lower cost of these vehicles at the time of its purchase. Manufacturers, on the other hand, can claim the incentive from the government at the end of each month.

According to the scheme, depending on technology used on the vehicles, battery operated scooters and motorcycles will be eligible to gain benefits which range between Rs 1,800 to Rs 29,000. Similarly, the three-wheeler vehicles will be able to gain benefits ranging between Rs 3,300 and Rs 61,000.

In four-wheelers, the incentives offered will be between the range of Rs 13,000 and Rs 1.38 lakh, while in light commercial vehicles the benefits will range from Rs 17,000 to Rs 1.87 lakh. Buses, on the other hand, can avail for benefits between Rs 34 lakh and Rs 66 lakh.