Govt Extends FAME-I for 6 Months; Withdraws Conventional Battery Vehicles Sops

The Heavy Industries Ministry said in a statement that, incentives in the remaining period of the scheme shall only be available for registered vehicles.

In a bid to promote electric and hybrid vehicles, the Government of India has extended the first phase of the FAME-India scheme by another 6 months till March 31, next year.

electric and hybrid vehicles

However, it has withdrawn benefits of incentive available to conventional battery vehicles.

The Heavy Industries Ministry said in a statement that, incentives in the remaining period of the scheme shall only be available for registered vehicles.

Now from October 1, electric two & three wheelers powered by conventional lead-acid batteries were not eligible for incentives under FAME-I.

As per the media reports, the launch of FAME II have been delayed as the PMO has sought reworking of the proposal to offer incentives of around Rs 5,500 crore, and it is also in favour of utilising most of the funds to encourage local manufacturing of lithium-ion batteries, which form the core of electric vehicles, as India presently imports these batteries from China.

The Ministry said in a statement that, “It has been decided that the period of the FAME-India scheme be further extended for a further period of six months i.e. upto March 31, 2019 or till Notification of FAME-II, whichever is earlier.”

However it further added that, the extension is subject to the following:

“The benefits of incentive available to conventional battery vehicles as elucidated in para 26 of the original notification of the scheme dated 13th March, 2015 stands discontinued w.e.f. 1st October, 2018.”

“Incentives in the remaining period of the scheme shall only be available for registered vehicles. Henceforth, with effect from October 1, 2018, vehicles not requiring registration shall be excluded from the scope of the scheme irrespective of the type of battery..,” it said.

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Manu Tayal

Manu Tayal

Manu is an Associate Editor at Saur Energy International where she writes and edits clean & green energy news, featured articles and interview industry veterans with a special focus on solar, wind and financial segments.

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