- Indian government approves a budget of Rs 10,000 crore for the second phase of FAME
- The scheme will be implemented for a three year period from 2019 to 2022
- The subsidy on the EVs will be applicable to commercial vehicles, public transport vehicles and two-wheelers
The Indian government has approved a budget of Rs 10,000 crore for the second phase of FAME (Faster Adoption and Manufacturing of Electric vehicle) which will be implemented in the country from 1 April 2019. Interestingly, this year the government has doubled the budget as compared to the Rs 4,500 crore which was announced last year. The FAME 2 scheme will be implemented for a period of three years from 2019 to 2022.
Here below are the top five things you need to know –
1. Effective from 1 April 2019, the subsidy on the EVs will be applicable to commercial vehicles, public transport vehicles and two-wheelers.
2. Only the vehicles powered by lithium-ion batteries or more advanced power source will benefit from the FAME 2 scheme.
3. As part of EV charging infrastructure plans, around 2,700 charging stations will be set up across different locations in Tier-1 cities.
4. The scheme will support the manufacturing and sale of 10 lakh electric two-wheelers, five lakh electric three-wheelers, 54,000 electric four-wheelers, and 7000 electric buses.
5. The scheme exempts hybrids and EVs from road tax and registration charges.
The budget allocation in 2019 will further boost electric vehicle development in the country. Speaking on the occasion, Sohinder Gill, Director General, Society of Manufacturers of Electric Vehicles (SMEV) said, “We are thankful to the government for considering our demand for a long-term scheme with substantial fund support. The support would encourage associated industry players to invest in the sector, which will further help in creating an ecosystem, locally. We look forward to seeing the final notification from the concerned ministry, which will give us clarity on the government’s roadmap of e-mobility.”