FAME India Scheme set to be extended by up to 6 months

Here’s some good news for OEMs and suppliers in the electric and hybrid vehicles/technologies industry, and those drawing plans to enter it.

The FAME India scheme – the Indian government’s flagship programme to promote the electric and hybrid vehicle industry in India  –  has received a formal nod of extension from the concerned ministries (Finance, Power and Heavy Industries). It is learnt that the scheme could get an extension of 3-6 months. Phase I of the scheme that was introduced on April 1, 2015 ends on March 31, 2017. A notification to this effect is expected soon.

In a PTI report of March 21, Babul Supriyo, Minister of State for Heavy Industries & Public Enterprises, is quoted as saying in a written reply to the Lok Sabha that the department of Heavy Industry has provided demand incentives of Rs.127.77 crore for purchase of 111,897 electric/hybrid vehicles under the scheme till now.

Along with the extension of the scheme, the FAME India Scheme is set to see the expansion of its purview. In the modified version, the scheme will include incentives for electric buses and could also offer incentives for intra-city commercial vehicles, including three-wheelers. Incentives could also be offered to taxis. The intent of the government is learnt to be to include those segments of vehicles that will make a significant positive impact on the environment and the fuel bill of the country by going electric. That means if you are planning to buy an electric car/two-wheeler, don’t expect any further incentive but significant benefits could be on the way for a new set of people who are in the business of moving people or goods, mainly within city limits.