Electric Cars To Become Cheaper; FAME II Get Cabinet’s Nod

New Delhi: The Faster Adoption and Manufacturing of Electric Vehicles II (FAME II) scheme has received a nod from the Union Cabinet. It comes with Rs 10,000 crore allocation, which will be used to incentivise electric vehicles(EV) and charging infrastructure for the next three years.

The central government intends to make all new cars sold electric by 2030, in a bid to reduce pollution and dependence on oil imports. The scheme will be used to direct subsidize EVs and build 2700 charging stations. Cities would have charging points in every 3 km square radius and highways at 25-km intervals.

The incentives will mainly be given to the commercial three-wheeler and four-wheeler vehicles to improve public transportation.

A total of 10 lakh electric two-wheelers, 5 lakh electric three-wheelers, 55,000 electric four wheelers and 7000 buses will benefit from the scheme in the following 3 years.

EVs running on lithium batteries or advanced technology such as fuel-cell will be eligible for the subsidy. Older lead acid based electric scooters will not be eligible any more.

Mahindra sells the e2o, e-verito and other commercial electric vehicles in India. Tata had recently supplied electric versions of the Tigor to EESL. Maruti Suzuki is testing the electric Wagon R to launch in 2020 and is readying a battery plant in Gujarat. Nissan, Hyundai, Audi and Mercedes are also expected to bring their electric cars here soon.