The Union Cabinet may decide on the roll out of the FAME India scheme’s second phase to boost adoption of energy-efficient vehicles in a month’s time, Union Heavy Industries Minister Anant Geete said.
In a recent report, PTI stated that the proposal entailing details of the scheme should come up before the Union Cabinet in a month, the minister told. The second phase of the scheme spanning five years from 2018-19 to 2022-23 is likely to entail financial support of Rs 9,381 crore and target new energy vehicles used for public transport, commercial purposes and high-speed two-wheeler, official sources informed PTI.
The scheme may also entail provision for establishment of a Rs 500 crore venture capital fund related to electric vehicles to boost high-risk startups and foster innovation and entrepreneurship.
The main thrust of the venture capital funding will be for development of zero emission vehicles and its component manufacturing base, making prototype to manufacturing and development of R&D, and promoting work on alternative battery chemistry, among others.
Under FAME II, demand aggregation will be attempted for city buses, electric three-wheelers and electric four-wheeler taxi segment to bring down the cost of vehicles. Agencies such as EESL, ASRTU (Association of State Road Transport Undertakings) could be considered as potential aggregators.
Moreover, large EV components such as motor, drive powertrain and controller, which are currently not covered under modified special incentive package scheme (MSIPS) of the Ministry of Electronics and Information Technology have been proposed to be given capital investment subsidy at a rate of 20-25 per cent of capital investment under FAME II.