New Delhi: Prime Minister Narendra Modi will announce FAME II in the national capital on Friday at India’s First Global Mobility Summit ‘MOVE’. The second phase of FAME India scheme which will be launched today will offer incentives for mass adoption of electric vehicles (EVs) with an outlay of Rs 5,500 crore. Union Minister for Road Transport & Highways Nitin Gadkari also said the ministry has done away with the requirement of local testing for initially bringing EVs into India for sale.

Union Minister Anant Geete confirmed the same and said that Heavy Industry Ministry was framing a comprehensive auto policy after consultation with all the stakeholders. Geete further said, “The department of heavy industries has always supported the automotive industry. We will definitely look into suggestions of having a clear, well defined short, mid and long-term policy. It is the duty of the government to make policy which is executed by the industry. So we should not make a policy which cannot be executed by the industry.”

FAME II which will continue for five long years will offer subsidy to all categories of EVs, which would include all types of two-wheelers, three-wheelers and four-wheelers. The EVs would also include taxis and electric buses used in public transportation, in order to promote green vehicles and check pollution. Apart from that, the second phase of the scheme will also ideate the setting up of massive charging infrastructure to support electric vehicles. Also, 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 3,300 and Rs 61,000.

However, strong hybrid vehicles, which were entitled to incentives in the FAME I, will not be able to avail incentives in the second phase. The government will also address the auto industry’s concerns regarding fuels and biofuel.

For the unversed, the government had extended the phase 1 of the FAME India scheme by six months till September-30. 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.