New Delhi :Government will spend Rs 14,000 crore to promote hybrid and electric vehicles in the country, Heavy Industries Minister Anant Geete said today.
“Domestic automobile industry needs to become sustainable in the wake of stiff global competition, specially when we are competing with developed nations. Under the National Electric Mobility Mission, we are making special efforts to make Prime Minister’s ‘Make in India’ drive a success,” Geete said addressing a global conference on Public Transport Innovation here.
He said the world was battling to conserve ecology and environment and the country needs to embrace newer technologies to promote ecological balance.
“We are trying hard in this direction. A scheme has been formulated by the ministry to promote hybrid and electric vehicles. We are going to spend about Rs 14,000 crore on this scheme,” he said.
He said under the scheme, public transport system in metropolitan cities would be encouraged to use hybrid and electric models.
“About 30 per cent grant under the scheme will be given by the government to our domestic industry or foreign players for manufacturing electric or hybrid vehicles…This is the demand of the future,” he said.
To promote eco-friendly vehicles, the government in April launched FAME India – Faster Adoption and Manufacturing of Hybrid and Electric vehicles in India – offering incentives on electric and hybrid vehicles of up to Rs 29,000 for bikes and Rs 1.38 lakh for cars.
FAME India is a part of the National Electric Mobility Mission Plan.
Geete had earlier said Phase-1 of the scheme will be implemented over a two-year period (2015-17) with an approved outlay of Rs 795 crore, out of which Rs 500 crore will be spent on demand incentives.