The Indian government has announced a new incentive scheme for electric and hybrid vehicles designed to support EV manufacturing and boost sales. The initiative will unfold over the next six years with a budget of Rs 795 crore (about 113 million euros at today’s exchange rate) in the first two years.
Launched on 1st April, FAME-India (Faster Adoption and Manufacturing of Hybrid and Electric vehicles in India) will provide financial incentives for the purchase of a wide range of electric and hybrid vehicles, from two-wheelers to buses. The aim of the programme is to kick start growth in the electric and hybrid sector, allowing it to become self-sustaining after 2020.
Over the next six years, the government will invest in four key areas: the development of a technology platform, demand incentives, the charging infrastructure, and pilot projects and operations. Phase one of FAME-India will run from FY 2015-16 to FY 2016-17. After this period, the initiative will be assessed and a new budget will be decided for the following years.
Financial incentives have been set at up to Rs 29,000 (412 euros) for battery-operated motorcycles, Rs 61,000 (867 euros) for three-wheelers and Rs 1.38 lakh (1,961 euros) for four-wheelers. For light commercial vehicles, the figure rises to as much as Rs 1.87 lakh (2655 euros), while buses have been capped at Rs 66 lakh (93,771 euros).
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