Subsidy on EVs Under FAME India Scheme Extended

  • 16th, Apr 2018 3:45 PM
  • Mayank Sharma
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Indian Government regulated FAME Scheme that is responsible for offering subsidies on the electric vehicles, has been extended for six more months. FAME India scheme stands for Faster Adoption and Manufacturing of f (Hybrid and) Electric Vehicles India scheme and was announced in 2015. It has completed two financial years for phase-I by March 2017. The government extended Phase-I since 30 September or the time when the Phase-II will launch, as it recently is underworked and not implemented.

The responsibility of preparing Phase-II for the FAME India scheme is taken by the government's think tank, NITI Aayog that advises the government on developing economic policy process. In the ongoing Phase-I, the policy benefits with the incentives of Rs 22,000 for bringing down the price of an electric vehicle.

Read also: India-Specs Honda Electric Scooter Underworks

Altogether, the recent announcement that confirms no need of any licence for setting up electric vehicle charging infrastructure also supporting electric vehicle mobility in coming future. The mandate licence for transmission, distribution or trading in electricity under the Electricity Act, 2003, would not affect any operations like setting up charging stations and regulate them, as announced by the Power Ministry.

Well, as of now, there is no clarification on what would be offered in the Phase-II FAME India scheme. Though, the manufacturers like Hero Electric and others will have a positive attitude towards registering around 10 times increased sales in next five years. Hero Electric has rolled out above 25,000 electric scooters in the last financial year, that count is expected to reach 2.5 lakh units by 2022.