FAME scheme to help India save Rs 60,000-cr fuel annually: Geete

The FAME scheme offering incentives for hybrid and electric vehicles will help in annual saving of fuel worth Rs 60,000 crore, besides containing pollution, Heavy Industries Minister Anant Geete said on Wednesday.

“The biggest challenge for the auto sector today is related to environment. Under the scheme, the government has decided to invest Rs 14,000 crore. Due to this investment, we would be able to save fuel worth about Rs 60,000 crore. This means, definitely it will help in controlling pollution too,” the minister said at the SIAM convention here.

However, he said that it is a proven fact that burning of fuel is not the only reason for pollution. To promote eco-friendly vehicles, the government had last year launched the FAME India scheme offering incentives on electric and hybrid vehicles of up to Rs 29,000 for bikes and Rs 1.38 lakh for cars.

FAME India ( Faster Adoption and Manufacturing of Hybrid and Electric Vehicles in India) is a part of the National Electric Mobility Mission Plan. The scheme envisages Rs 795 crore support in the first two fiscals starting last year.

The minister further said the FAME scheme is for the entire country and any consumer can take advantage of this.

Assuring full support to the auto industry, the minister hoped the implementation of GST law will help the sector most. The auto industry will be benefited from the ease of doing business and reduction in excise duty, Geete added.

Further, he said that India is a country of young population and the auto industry should take benefit of this demographic dividend. He also asked the auto industry body SIAM to indulge in continuous dialogue with the government to raise their issues and concerns. “We should meet once in every six months. There should be a continuous dialogue,” he added.