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Govt notifies FAME-II scheme to encourage adoption of EVs

11 Mar 2019 Evaluate

The government has notified the second phase of the Faster Adoption and Manufacturing of Electric Vehicles in India (FAME-II) scheme for faster adoption of electric mobility and development of its manufacturing ecosystem in the country. The scheme will be implemented for three years starting April 1, 2019, with a Rs 10,000-crore outlay.

Under the newly notified FAME-II scheme, 10 lakh registered electric two-wheelers with a maximum ex-factory price will be eligible to avail incentive of Rs 20,000 each. It will also support 5 lakh e-rickshaws having ex-factory price of up to Rs 5 lakh with an incentive of Rs 50,000 each. Moreover, FAME-II will offer an incentive of Rs 1.5 lakh each to 35,000 electric four-wheelers with an ex-factory price of up to Rs 15 lakh, and incentive of Rs 13,000 each to 20,000 strong hybrid four-wheelers with ex-factory price of up to Rs 15 lakh. It will support 7,090 e-buses with an incentive of up to Rs 50 lakh each having an ex-factory price of up to Rs 2 crore.

The scheme will have a Rs 1,500-crore outlay in 2019-20; Rs 5,000 crore in 2020-21 and Rs 3,500 crore in 2021-22. It will cover buses with electric vehicle (EV) technology; electric, plug-in hybrid and strong hybrid four wheelers; electric three-wheelers including e-rickshaws and electric two-wheelers. An inter-ministerial empowered committee, 'Project Implementation and Sanctioning Committee' (PISC), headed by the heavy industry secretary, shall be constituted for overall monitoring, sanctioning and implementation of the scheme.

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