Following the reduction in the cost of electric car battery from existing 28% to 18% by GST council, the government has confirmed that the second phase of the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME) will be announced soon that will boost the Indian EV industry with heavy incentives likely on R&D and interventions on the demand and supply side.
Babul Supriyo, Minister of State of Heavy Industries and Public Enterprises said, "The need for innovative technology is assuming great importance due to rapidly changing product technologies in the automotive industry, depleting fossil fuel resources, high import cost of fuel, issues of environmental degradation and climate change."
In a written statement to the Lok Sabha, Minister of State of Heavy Industries and Public Enterprises Babul Supriyo also said that the Indian automotive industry needs to develop technologies like lithium ion batteries, electric motors for automotive applications and battery management systems.
Click here to view New Cars!
Government rolled out the National Mission on Electric Mobility in 2013 with an aim to develop electric mobility in mission mode. India, being the 5th largest car manufacturer and 7th largest commercial vehicle manufacturer and largest manufacturer of two wheelers in the world, the minister observed that switching over from conventional IC engine vehicles to new technologies like electric, hybrid, fuel cells is essential.
Earlier, PTI reported that the Union Cabinet was considering over for approval the proposal entailing financial support of Rs 9,381 crore in the second phase of the FAME India scheme for duration five years to boost adoption of energy-efficient vehicles.
Aiming to promote eco-friendly vehicles, the government launched the Faster Adoption and Manufacturing of Hybrid and Electric vehicles in India (FAME India) scheme in 2015 offering incentives on electric and hybrid vehicles, where the pilot phase of the scheme was initially proposed for two years till March 31, 2017 but was further extended twice for up to March 31, 2018.
The government also announced an extension of phase 1 of the FAME-India scheme in April entailing incentives for mass adoption of electric and strong hybrid vehicles by six months till September-end or till its second phase is approved, whichever is earlier.