Indian Govt Offers Rs 1.38 Lakh Incentives for Electric and Hybrid Vehicles

New Delhi: Indian government to launch FAME (Faster Adoption and Manufacturing of Hybrid and Electric vehicles) India scheme in order to offer Rs. 1.38 Lakh incentives for electric and hybrid vehicles.

Government officially launched FAME India scheme to offer incentives for electric and hybrid vehicles. FAME India stands for Faster Adoption and Manufacturing of Hybrid and Electric vehicles in India. It is a part of National Electric Mobility Mission plan. The scheme started with Rs.795 crore supports in the first two financial years. The vision of this mission is to promote eco-friendly vehicles. It offers incentives up to Rs.29,000 for bikes and Rs.1.38 lakh for cars.

According to Union Heavy Industries Minister Anant Geete, the mission starts in metropolitan cities, sooner or later it will be launched in smart cities and all major cities across the country. To launch this scheme across country, heavy industries ministry has estimated total requirements of about Rs. 14,000 crore.

According to Geete, Phase I of the scheme will be implemented in over a two year period in 2015-16 and 2016-17 with the support of Rs.795 crore, out of it Rs.500 crore will be spent on demand incentives. She elaborated Fame work that is, “The customer can get the incentive in the form of lower cost of hybrid or electric vehicles at the time of its purchase. Manufactures can claim the incentive from the government at the end of the each month.”

As per scheme, based on the technology battery operated scooters and motorcycles will demand Rs. 1,800 to Rs. 29,000 and three wheelers will demand Rs.3,300 to Rs.61,00 whereas four wheelers from Rs.13,000 to Rs.1.38 lakh, the light commercial vehicles from Rs.17,000 to Rs.1.87 lakh and for buses it is from Rs.34 lakh to Rs.66 lakh.

Geete said that it is really needed to find alternative sources of energy for transport which are eco-friendly yet cost effective. Additional Secretary in the Heavy Industries ministry Ambuj Sharma said that, Tata motors is soon going to come out with  a couple of offerings. Maruthi Sujuki is also ready with its swift model with range extender technology.

Society of Indian Automobile Manufacturers (SIAM) Director General Vishnu Mathur has expressed his view on this occasion that is; this is a new generation technology and with this we are going to make a beginning. And this scheme will also help domestic manufactures to develop and sell their vehicle here. For this economic year initially government has approved the Rs. 75 crore for FAME Scheme.