Karnataka asks Centre increase subsidy amount to procure electric buses under FAME- II

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

Savadi met Javadekar here an submitted a memorandum requesting him to reduce the sanctioned 300 electric buses under FAME-II scheme to the state, and to increase the subsidy amount to Rs 1 crore on the line 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 fact that BMTC has issued Request For Proposal (RFP) to procure buses, due to high quote 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 Minster said in the memorandum to the Minister.

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