Why in News?

• Indian Prime Minister will launch the second phase of the FAME India scheme on September 7, 2018. The scheme offers incentives for mass adoption of electric vehicles with an outlay of Rs 5,500 crore.
• The Prime Minister will unveil the scheme at the inaugural session of ‘MOVE’ – the global mobility summit, which will be organised in New Delhi from September 7-8.
• The summit will see in attendance several global CEOs from the automotive sector.

Key Highlights :

• The modalities of the scheme have been finalised by an inter-ministerial panel and it will soon be placed before the union Cabinet for approval.
• The second phase of the scheme spanning five years will offer a subsidy to all categories of electric vehicles, including two-wheelers, three-wheelers and four-wheelers including taxis and electric buses that are used in public transportation.
• The main aim of the scheme is to promote green vehicles and check pollution. It will also envisage setting up a massive charging infrastructure to support electric vehicles.
• 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.

Which vehicles are covered under FAME India phase I?

• At present, the incentive is being offered on purchase of strong hybrid and electric cars, two-wheelers and three-wheelers under the Faster Adoption and Manufacturing of (Strong) Hybrid and Electric vehicles (FAME India) scheme.
• Under the scheme, depending on technology, battery-operated scooters and motorcycles are eligible for incentives ranging from Rs 1,800 to Rs 29,000, while in three-wheelers it is between Rs 3300 and Rs 61000.
• Automotive manufacturers claim the incentive from the government at the end of each month.

Background:

• The FAME India scheme was launched by the Indian Government in 2015 to promote eco-friendly vehicles.
• In April, the Union government had extended the ongoing 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.