Hike subsidy for electric buses under FAME- II: K'taka to Centre

Transport Minister Laxman S Savadi on Monday requested Union Environment, Forests and Heavy Industries Minister Prakash Javadekar to restructure and increase FAME II subsidy to procure electric buses for BMTC.

Savadi met Javadekar here and submitted a memorandum, requesting him to reduce the sanctioned 300 electric buses under FAME-II scheme to the state and increase the subsidy amount to Rs 1 crore on the lines of FAME-I.

FAME (Faster Adoptation and Manufacturing of Hybrid and Electric Vehicle in India) is a centrally sponsored scheme, implemented by Ministry of Heavy Industries, to promote electric and hybrid vehicles in public transport system.

The scheme was implemented in two phases FAME-I and FAME-II. Under FAME-II, the Bengaluru Metropolitan Transport Corporation (BMTC) was selected to receive the capital expenditure subsidy to procure 300 electric
buses.

Despite the BMTC issuing Request For Proposal (RFP) to procure buses, due to high quotation for the bid, the transport company was forced to reissue tender, making it more attractive, Savadi said in a memorandum. Like FAME I, the subsidy amount should be increased to Rs 1 crore in FAME-II also, the minister said in the memorandum.

Later speaking to reporters, Savadi said the government has decided to instal GPS system in all buses to improve efficiency and for better monitoring of their movement. Several steps have been taken to reduce expenditure on diesel, including giving incentives to drivers for saving diesel, he said.