The second phase of Faster Adoption and Manufacturing of (Hybrid & Electric Vehicles) India (FAME) scheme will be for a period of three years instead of five years as envisaged earlier.
The Union Cabinet today may clear a ₹10,000-crore programme under the FAME-II scheme for promotion of electric and hybrid vehicles in the country.
Under this scheme, the government is likely to announce a subsidy of up to ₹2.5 lakh for 60,000 electric cars and dole of up to ₹20,000 for 20,000 hybrid cars that are bought over the next three years.
Sources familiar with the proposal told TOI that an overwhelming majority of the funds would be allocated for electric two and three-wheelers and buses used for public transport. E-rickshaws will be eligible for subsidy as well.
The daily has estimated that a buyer of an electric two-wheeler may get around ₹40,000. For electric buses, the subsidy would be up to ₹60 lakh.
Subsidy amount to be based on battery capacity
The subsidy calculation will be linked to the battery capacity of the respective vehicle — ₹10,000 per KWh for all vehicles and ₹20,000 per KWh for buses, it said.
The government has almost doubled the allocation for the scheme from ₹5,500 crore proposed earlier.
The much-delayed FAME-II will be for a period of three years instead of five years as envisaged earlier. It will come into effect from April.
