Under FAME scheme, Government of India will spend INR 10K crore on Electric Vehicles for public transportation
FAME India (Faster Adoption and Manufacturing of Hybrid & Electric Vehicles in India) is being dedicatedly being promoted by the Government of India. Government is investing heavily to build infrastructure to support electric vehicles.
Phase two of FAME India began from 1 April 2019 for a period of three years. The government has given a budgetary support of Rs. 10,000 crore. This is a huge amount for a vision that is yet to pick fast pace. But the government is dedicated to build a greener future for our coming generations.Â Phase II will focus on electrification of public and shared transportation.
If we talk numbers the government plans to put 7000 e-Buses, 5 lakh e-3 Wheelers, 55000 e-4 Wheeler Passenger Cars and 10 lakh e-2 Wheelers on the roads through FAME India.
Electric Vehicles covered in PHASE two of FAME:
- e-3W, e-4W and e-bus for public transport
- Privately owned registered e-2W
- Creation of charging infrastructure
Under Phase-II of FAME India around 14,200 Electric Vehicles have been supported till 26 February 2020. Around 5600 EV buses have also been sanctioned to various State/ City Transport Undertakings. For this purpose Government is spending a whooping Rs. 2800 crores.
Also, the following initiatives have also been taken up by the Government to promote electric/ hybrid
- GST on EVs reduced from 12% to 5%.
- TO incentivize investment in charging infrastructure, Ministry of Power has approved electricity sale as â€˜serviceâ€™ for charging of electric vehicles.
- Exemption from requirement of permit has been granted to the Battery Operated Transport Vehicles and Transport Vehicles running on Ethanol and Methanol fuels.
- Additional income tax deduction of INR 1.5 lakh on the interest paid on loans taken to buy EVs.
Source: Reply by Minister of Heavy Industries & Public Enterprises,Â Prakash Javadekar in Lok Sabha.