Bengaluru among 11 cities chosen to promote electric vehicles

The Centre has selected 11 cities, including Bengaluru, to promote electric vehicles in public transport system under the e-mobility project.

Under the project named Faster Adoption and Manufacturing of Hybrid and Electric vehicles in India (FAME India), the Ministry of Heavy Industries and Public Enterprises is targeting a fully electric fleet for public transport, including buses, taxis and autorickshaws in these cities.

Under the scheme, the Ministry will provide financial incentives to states for purchase of electric buses, three- and four-wheelers, and for setting up charging infrastructure for public transport.

Other cities selected are Delhi, Ahmedabad, Jaipur, Mumbai, Lucknow, Hyderabad, Indore, Kolkata, Jammu and Guwahati.

The cities are required to finalise the tendering process for procuring buses and setting up charging infrastructure. The ministry will spend about Rs 437 crore under FAME India, which includes about Rs 40 crore for installation of charging infrastructure as incentive.

Union Heavy Industries Minister Anant Geete said efforts were being made to lower the cost of lithium ion batteries used in electric vehicles.

According to the minister, the subsidy to be provided to buses is in the range of Rs 75 lakh to Rs 1 crore, which is 60% of the cost. For taxis, the subsidy amount is Rs 1.24 lakh, which is 10-15% of its cost.

"For autorickshaws, the subsidy is between Rs 37,000 and Rs 61,000. All the buses will be fully electric, battery-operated and involving zero emissions," the minister said.

By February-end, all 11 states have to invite tenders and by March-end, they have to place orders with selected companies for procurement of the vehicles.