PM Modi to launch 2nd phase of FAME to promote electric vehicles in India

New Delhi: Prime Minister Narendra Modi will launch the second phase of the FAME India scheme here on September 7 at India's First Global Mobility Summit 'MOVE', Union Minister Anant Geete said Wednesday.

Last week, PTI had reported citing official sources that the prime minister would launch FAME II offering incentives for mass adoption of electric vehicles with an outlay of Rs 5,500 crore on September 7.

"Fame I will come to an end by September 30 and the Prime Minister will announce FAME II on September 7," Geete said. Addressing the inaugural session of the Automotive Component Manufacturers Association here, Geete said the Heavy Industry Ministry was framing a comprehensive auto policy after consultation with all the stakeholders.

"The department of heavy industries has always supported the automotive industry. We will definitely look into suggestions of having a clear, well defined short, mid and long term policy. "It is the duty of the government to make policy which is executed by the industry. So we should not make a policy which cannot be executed by the industry," Geete said.

In February, the government had sought stakeholders' comments on the draft National Auto Policy, which seeks to promote clean and safe mobility and adopt a long-term road map to harmonise emission standards with global benchmarks by 2028. The minister said the government will address the auto industry's concerns regarding fuels and biofuel, however, adding that with changing times, it must adapt and embrace new technologies.

The heavy industry and public enterprises minister observed that the demand of changing times means we have to move towards electric mobility. "In future we have to move towards it and we must accept the challenges of the future requirements," Geete said.

In April, the government had extended the phase 1 of the FAME India scheme by six months till September-end or till its second phase is approved. The first phase of the scheme was initially proposed for two years till March 31, 2017 but was extended twice for six months up to March 31, 2018.

The second phase of the scheme spanning five years will offer subsidy to all categories of electric vehicles, including two-wheelers, three-wheelers and four-wheelers including taxis and electric buses used in public transportation, to promote green vehicles and check pollution. It will also envisage setting up massive charging infrastructure to support electric vehicles, senior officials said.

However, strong hybrid vehicles, which were entitled to incentives in the ongoing pilot phase of the scheme, will not be able to avail sops in the second phase. Under the scheme, depending on technology, battery-operated scooters and motorcycles are eligible for incentives ranging between Rs 1,800 to Rs 29,000, while in three-wheelers it is between Rs 3,300 and Rs 61,000.

Automotive manufacturers claim the incentive from the government at the end of each month. With an aim to promote ecofriendly vehicles, the government had launched the FAME India scheme in 2015. The ongoing pilot phase of the scheme was earlier extended till September this year or until its second phase is approved.