The Union Cabinet may soon consider for approval the proposal entailing financial support of Rs 9,381 crore in the second phase of the FAME India scheme spanning five years to boost adoption of energy-efficient vehicles in India, sources said.
The Heavy Industry Ministry had circulated a draft Cabinet note, entailing the details of the proposed scheme among various related government departments, including power, new and renewable energy, road transport and highways, finance and others, a senior official said.
The final Cabinet note incorporating the views of related government departments has been prepared and may soon be taken up by the Union Cabinet for approval, paving the way for the roll out of FAME-II, official sources said. The total requirement of the fund is Rs 9,381 crore spanning five years from 2018-19 to 2022-23.
However, the second phase of the scheme will be restricted to new energy vehicles used for public transport, commercial purposes and high-speed two-wheelers, officials said.
With an aim to promote eco-friendly vehicles, the government had launched the Faster Adoption and Manufacturing of Hybrid and Electric vehicles in India (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.