A scheme, FAME-II, already exists to incentivize both hybrid and electric vehicles. In addition, a committee instituted by the ministry of heavy industries (MHI) will seek the Indian auto industry's views on the possibility of reducing taxes on hybrid vehicles.
FAME-II, short for faster adoption and manufacturing of (hybrid &) electric vehicles, may continue its incentives into its next edition, FAME-III. The new version is expected to receive an outlay of up to 12,000 crore, the people cited above said on the condition of anonymity.
FAME-II, which expires on March 31, doles out demand-side cash subsidies on the sale and purchase of hybrid and electric four-wheelers for commercial use if they meet certain price and performance criteria.
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