The Indian government is considering spending Rs 12,000 crore in FAME-III scheme in the next 2 years to promote the manufacturing of electric vehicles (EVs).
For this, the government is going to start the third phase of Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme soon, which can be announced in the next 15 days.
Apart from this, now the duration of this scheme can be reduced from 5 years to 2 years.
What will be FAME-III scheme?
According to CNBC-TV18 report, the per vehicle incentive in the FAME-III scheme may also be reduced. Because, the government wants to stop giving subsidy to specific segments in 2-3 years.
Additionally, there may also be relaxations for new segments like tractors and trucks in the third phase of the FAME scheme and details of the FAME-III scheme are expected to be announced with the interim budget. Let us tell you, FAME-II, which started in 2014, is going to end in March.
The government may keep a budget of Rs 3,500 crore for state transport corporations to take up electric buses. Another fund of Rs 50,000 crore may also be released to encourage adoption of electric buses by private aggregators.
Such a fund would aim to reduce the risk of banks lending for electric buses. The scheme includes two-wheelers, three-wheelers, shared mobility cars, buses and charging infrastructure.