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FAME-II will help commit investments in EV: Auto industry

Automobile industry players on Friday said that the government’s announcement of Rs 10,000-crore FAME-II scheme brings clarity and policy stability, and will provide a big fillip to popularisation of electric vehicles in India.

Industry bodies SIAM, SMEV, along with companies like Mahindra & Mahindra and Tata Motors, lauded the phase-II of Faster Adoption and Manufacturing of (Hybrid) and Electric Vehicles (FAME) saying it will create an environment for all players to commit investments on the journey of sustainability.

“This will provide a big fillip to our joint efforts to introduce higher levels of electric mobility in the country,” Society of Indian Automobile Manufacturers (SIAM) President Rajan Wadhera said in a statement.

He further said that the industry has been eagerly waiting for more than two years for announcement of a long-term policy, including finalisation of the FAME-II scheme.

The three-year scheme, with significantly enhanced financial allocations, will instill tremendous confidence in the auto as well as the component industry while making long-term investment decisions in electric vehicle (EV) development and manufacturing with minimum risk, he added.

On Thursday, the Union Cabinet cleared a Rs 10,000-crore programme under the FAME-II scheme to be implemented over a period of three years with effect from April 1, 2019.

Through the scheme, the government plans to support 10 lakh electric two-wheelers, five lakh three-wheelers, 55,000 four-wheelers and 7,000 buses.

 

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